What Investors Want From a Data Room

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A data room is an online platform that is secure and allows the transfer of sensitive information in a due diligence process. It doesn’t matter if you’re preparing an M&A transaction, closing an investment, or helping with other high-risk business activities Data rooms enable users to easily share and access files while ensuring the security of these files.

Investors are likely to want to look over important corporate documents during the due diligence phase. This includes reviews of contracts, shareholder agreements, etc. If the information is shared via shared drives or email it can be a lengthy and time-consuming. A virtual data room enables the legal departments and other stakeholders to collaborate securely on critical documents.

As a founder, it’s important to understand what investors expect from your data room, so that you can meet their expectations quickly and efficiently. There are a few essential things you can include in your data room to make sure you stand out.

1. Team Information

Investors often ask for a list with the current team members’ titles. This will accelerate the process when you provide it in a brief section.

2. Competitive Analysis

Investors also want to know the strengths and weaknesses of your competition. It will demonstrate your research and speed up the process if you include a competitive analysis of the most successful competitors.