A data room is an online platform that is secure and facilitates the transfer of sensitive information in due diligence. If you are planning an M&A transaction, closing an investment, or participating in other high-risk business operations Data rooms enable users to easily share and access documents while also ensuring the security of these files.
Investors are likely to want to look over important corporate documents during the due diligence phase. This includes contract reviews and shareholder agreements, for example. This exchange of information can be difficult and time-consuming if it is handled in an email chain or shared drives. However, a virtual data room allows legal teams as well as other stakeholders to work securely on critical documents.
As founders, it’s crucial to know what investors want from your data room to ensure that you can deliver quickly and efficiently. There are a few key elements to include in your data room that will help you stand out from the rest of the pack:
1. Team Information
One of the most common requests from investors is an inventory of current team members and their job titles. If you can present this in a short section it will speed up the process a lot easier.
2. Competitive Analysis
Investors also seek out the strengths and weaknesses of your competitors. If you are able to include a consolidated competitive analysis of your top competitors in the data room, it will prove your depth of research and to speed up the process.