A data room is an online platform for secure information exchange during due diligence. Data rooms are great for any high-risk business venture, whether you’re preparing for an M&A deal or closing an investment, or helping to facilitate another high-risk transaction. Users can easily access and share documents while ensuring the security of the documents.
Investors should 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 shared drives or emails it can be time-consuming and difficult. Virtual data rooms allow departments of law and other stakeholders to work in a secure manner on crucial documents.
As a founder it’s crucial to know what investors expect from your data space in order to deliver quickly and efficiently. There are many important aspects to include in your data room to help you stand out from your competitors:
1. Team Information
Investors often request a list of current team members’ jobs. If you can include this information in a succinct section this will make the process much more efficient.
2. Competitive Analysis
Investors will also want to know the strengths and weaknesses of your competition. This will prove your research and speed up the process by including a competitive analysis of your most prominent competitors.