A data room is an online repository which is secured and secure in the way it stores and shares sensitive business information. Most often used during due diligence, M&A or capital raising, it helps prevent sensitive documents from falling into the hands of unwelcome third parties. It makes the process of closing deals more efficient since it allows multiple parties to look over information and comment on it simultaneously. While there are plenty of free file sharing tools available, these tools are not equipped to handle the security demands that come with the storage and management of confidential business data. They do not have the same level of permission settings, auditing capabilities, or watermarking that a purpose built VDR can provide.
What you include in your dataroom will differ based on the stage of your business. However there are a few essential items that investors will expect to be able to see. These include:
1. Growth and history of the company. This could be a short section that describes your company’s history and its founding story, a one-page summary of your product’s and marketing goals and key growth metrics or a more thorough section that details your business’s history, growth trends and market research (including engagement and retention metrics).
2. Charts for organizational and team members. This includes the current number and role of your team members, as along with their salaries and titles. This information is important to share with investors to help them understand the strengths of your team and the way you plan to grow your business.
Remember to keep your data safe and protected by using a specially-designed data room application like Firmex. Doing so will aid in the process of funding and M&A more simple and safer. It will also make the process more efficient.