A data room is a secure online platform that facilitates the exchange of sensitive information during a due diligence process. Whether you are preparing for an M&A transaction or closing an investment or helping with other high-risk business transactions Data rooms enable users to share and access documents while also ensuring the security of those documents.
In the due diligence phase of any business transaction investors will want to review several important corporate documents including contract review and shareholder agreements, among more. If the information is exchanged via shared drives or email, it can be long and complicated. However a virtual data space lets legal teams and other stakeholders to work securely on important documents.
As a founder you need to know what investors expect from your data room to be able to provide them with speed and efficiency. There are a few key elements to include in your data room that will make you stand out the competition:
1. Team Information
The most frequent request from investors is an inventory of current team members and their titles. If you can see page provide this in a concise section it will speed up the process a lot easier.
2. Competitive Analysis
Investors are also likely to be interested in knowing the strengths and weaknesses of your competitors. This will prove your research and speed up the process when you include a competitive analysis of the most prominent competitors.