A data room is an online platform that facilitates sensitive information exchange during due diligence. If you are planning an M&A transaction or closing an investment or facilitating other high stakes business activities Data rooms allow users to easily share and access documents while also ensuring the security of those documents.
Investors are likely to want to look over important corporate documents during the due diligence phase. This includes reviewing contracts and shareholder agreements, for example. If the documents are exchanged via shared drives or email it could be laborious and difficult to. However a virtual data space lets legal teams and other stakeholders to work securely on crucial documents.
As virtual board portal meetings founders, it’s crucial to understand what investors are looking for from your data room so that you can meet their expectations quickly and efficiently. There are a few essential items you can include in your data room that will help you stand out.
1. Team Information
Investors frequently request a list of current team members’ names and job titles. This will help speed up the process by providing it in a concise section.
2. Competitive Analysis
Investors are also likely to be looking to understand the strengths and weaknesses of your competitors. If you can provide an integrated analysis of your competition of your top competitors in the information room, it will demonstrate the depth of your research and speed up the process.