A data room is an online platform that is secure and facilitates the sharing of sensitive information during a due diligence process. When you are preparing for a M&A transaction, closing an investment, or facilitating other high stakes business processes, data rooms allow users to easily share and access documents while ensuring the security of those documents.
Investors will need to review important corporate documents during the due diligence phase. This includes reviews of contracts as well as shareholder agreements. This exchange of information can be a challenge and time-consuming when it’s handled in an email chain or through shared drives. However a virtual data space permits legal teams and other stakeholders to collaborate securely on crucial documents.
As founders, it’s essential to know what investors want from your data room to ensure you can present it quickly and efficiently. There are several key things to include in your data room that will help you stand out your competitors:
1. Team Information
Investors often request an overview of the current team members’ job titles. This will make the process easier when you provide it in a concise section.
2. Competitive Analysis
Investors will also want to know the strengths and weaknesses of your competition. It will show your research and improve the process when you include a competitive analysis of your most successful competitors.