What Investors Want From a Data Room
A data room is an online platform that is secure and allows the exchange of sensitive data during a due diligence process. Data rooms are ideal for any business with high stakes such as preparing for an M&A deal, closing an investment or facilitating another high-stakes transaction. Users can access and share documents while ensuring the security of the files.
During the due diligence stage of any business transaction, investors should review the various corporate documents like contract review and shareholder agreements, among more. This exchange of information can be a challenge and time-consuming when it’s done through an email chain or through shared drives. A virtual data room allows lawyers and other parties to collaborate securely on critical documents.
As a founder, it’s essential to understand what investors want from your data space in order to deliver quickly and efficiently. There are several important things to include in your data room that will help you stand out from your competitors:
1. Team Information
The most frequent request from investors is for a list of current team members and their job titles. This can help speed up the process if you can provide it in a concise section.
2. Competitive Analysis
Investors will also be interested in knowing the strengths and weaknesses of your competition. It will show your research and accelerate the process when you include a comparative analysis of your top competitors.