A data room is an online platform for secure information exchange during due diligence. If you are planning a M&A transaction, closing an investment, or helping with other high-risk business processes Data rooms enable users to easily share and access documents, while ensuring the security of those documents.
During the due diligence phase of any business transaction investors will need to look over a variety of important corporate documents including contract review and shareholder agreements, among more. If the documents are exchanged via email or shared drives it can be a lengthy and time-consuming. Virtual data rooms allow the legal departments and other stakeholders to collaborate securely on critical documents.
As founders, it’s essential to know what investors want from your data room so that you can deliver quickly and efficiently. There are a few key things you can include in your data room that will help you stand out.
1. Team Information
The most frequent request from investors is for an overview of current team members and their titles. If you can include this information in a concise section, it will make the process much faster.
2. Competitive Analysis
Investors will also be interested in knowing about your competitor’s strengths and weaknesses. It will demonstrate your research and improve the process if you include a competitive analysis of the top competitors.