What to Include in a Data Room

A data room is an online platform that is secure and allows users to upload, read and access confidential documents. These platforms are typically utilized during M&A transactions, but they can also be used to raise funds and for due diligence. These platforms include free file-sharing websites, but they usually lack the security features needed to securely share confidential information. Some of these tools also tend to have a clunky interfaces, which can cause frustration for investors looking to invest.

The content of an investor data room will differ based on the stage of your business, but should include your Confidential Information Memorandum, a thorough time-line of your company’s growth and a complete list of investors currently. A competitor analysis section may also be useful to show your understanding of the market and direct competitors. Also, a section for the team that includes the precise titles, salaries and job descriptions of the current team members is vital.

In addition to the above, you may be able to include a section for customer references and referrals section as along with a one-page document that describes your marketing strategy and branding. It should also include the pitch deck you developed for your business and an overview of all press coverage received by your startup. It’s also important to set up an area specifically for additional questions investors might have. If you can answer these questions in a timely manner will help speed up the decision-making process.