What Investors Want From a Data Room

A data room is an online platform that is secure and facilitates the transfer of sensitive information in a due diligence process. If you are planning a M&A transaction or closing an investment or supporting other high-risk business transactions, data rooms allow users to share and access documents while also ensuring the security of those documents.

Investors should review important corporate documents during the due diligence phase. This includes contract reviews and shareholder agreements, among others. This exchange of information can be difficult and time consuming if it is handled in an email chain or shared drives. However a virtual data space allows legal teams as well as other stakeholders to work securely on crucial documents.

As a founder, it’s essential to understand what investors want from your data room to be able to deliver quickly and efficiently. There are a few key elements to include in your data room to make you stand out the competition:

1. Team Information

A common request from investors is an inventory of current team members and their job titles. This will accelerate the process if you can provide it in a concise section.

2. Competitive Analysis

Investors will also want to know the strengths and weaknesses of your competition. It will demonstrate your research and improve the process by including a competitive analysis of your most prominent competitors.

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