What Investors Want From a Data Room

A data room is an online platform that facilitates sensitive information exchange during due diligence. Data rooms are great for any high-risk business activity whether you’re planning an M&A deal, closing an investment or aiding in another high-risk transaction. Users are able to easily access and share documents while maintaining the security of the files.

Investors should review important corporate documents during the due diligence phase. This includes reviews of contracts and shareholder agreements, among others. This exchange of coding vs programming information can be challenging and time-consuming when it’s handled in an email chain or through shared drives. A virtual data room enables lawyers and other parties to work in a secure manner on crucial documents.

As a founder, it’s essential to understand what investors want from your data room in order to be able to deliver efficiently and quickly. There are a few essential elements you can put in your data room to make sure you stand out.

1. Team Information

Investors frequently request a list with the current team members’ job titles. This will accelerate the process when you provide the information in a short section.

2. Competitive Analysis

Investors are also likely to seek out the strengths and weaknesses of your competition. If you can provide an integrated analysis of your competition of your most prominent competitors in the data room, it will demonstrate your depth of research and speed up the process.