A data room is an online platform that facilitates secure information exchange during due diligence. It doesn’t matter if you’re preparing an M&A transaction or closing an investment or supporting other high-risk business processes data rooms permit users to share and access documents while ensuring the security of those files.
In the due diligence phase of any business transaction, investors will want to review a variety of important corporate documents including contract review and shareholder agreements, among more. This exchange of information can be a challenge and time consuming if it is handled in an email chain or shared drives. A virtual data room enables the legal departments and other stakeholders to collaborate securely on critical documents.
As a founder, it’s vital to know what investors expect from your data room, so that you can meet their expectations quickly and efficiently. There are a few key elements you can put in your data room to help you stand out.
1. Team Information
Investors frequently request a list with the current team members’ titles. If you can include this information in a brief section this will make the process much faster.
2. Competitive Analysis
Investors are also likely to want to know the strengths and weaknesses of your competitors. It will show your research and speed up the process when you include a comparative analysis of your most successful competitors.