What Investors Want From a Data Room

A data room is an online platform that is secure and allows the exchange of sensitive information during a due diligence process. Data rooms are perfect for any business with high stakes such as preparing for an M&A deal or closing an investment, or aiding in another high-risk transaction. Users can access and share documents while ensuring the security of the files.

During the due diligence phase of any business transaction investors should review the various corporate documents such as contract reviews agreements with shareholders, contract review, and more. If the documents are exchanged via email or shared drives it could be lengthy and time-consuming. However the use of a virtual data room lets legal teams and other stakeholders to collaborate securely on important documents.

As a founder, it’s important to know what investors are looking for from your data space so that you can meet their expectations quickly and efficiently. There are many important aspects to include in your data room to help you stand out from the competition:

1. Team Information

One of the most common requests from investors is an inventory of current team members and their titles. If you can include this information in a succinct section this will make the process a lot easier.

2. Competitive Analysis

Investors will also likely virtual board portal meetings be interested in knowing your competitor’s strengths and weaknesses. This will prove your research and improve the process if you include a competitive analysis of the most prominent competitors.