A data room is an online secure platform that facilitates the exchange of sensitive data during due diligence. Whether you are preparing for an M&A transaction or closing an investment or helping with other high-risk business operations Data rooms allow users to share and access documents, while ensuring the security of these files.
Investors are likely to want to look over important corporate documents during the due diligence phase. This can include contract reviews 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 lets legal teams and other stakeholders to securely collaborate on crucial documents.
As a founder it’s crucial to know what investors expect from your data space in order to be able to deliver efficiently and quickly. There are a few key elements to include in your data room that will help you stand out the competition:
1. Team Information
Investors frequently request a list of current team members’ titles. If you could provide this in a brief section this will make the process much easier.
2. Competitive Analysis
Investors are also likely to want to know about your competition’s strengths and weaknesses. It will show your research and accelerate the process by including a competitive analysis of your top competitors.
