A data room is an online platform that facilitates secure information exchange during due diligence. When you are preparing for an M&A transaction or closing an investment or facilitating other high stakes business activities Data rooms enable users to easily share and access files while ensuring the security of those documents.
Investors will need to review important corporate documents during the due diligence phase. This can include contract reviews and shareholder agreements, for example. If the documents are exchanged via email or shared drives it can be lengthy and time-consuming. However the virtual data room lets legal teams and other stakeholders to work securely on critical documents.
As a founder, it is essential to know what investors expect from your data room, in order to provide them with speed and efficiency. There are many important aspects to include in your data room that will make you stand out from your competitors:
1. Team Information
Investors often request a list of current team members’ job titles. This will accelerate the process by providing the information in a short section.
2. Competitive Analysis
Investors will also be interested in knowing the strengths and weaknesses of your competitors. If you could include an analysis of your competitive strengths and weaknesses that is consolidated for your most prominent competitors in the data room, it will demonstrate the depth of your research and will accelerate the process.