What to Include in a Data Room

A data room is an online secure platform that allows users to upload, review and download confidential documents. These platforms are used in M&A transactions, but can also be used to raise funds as well as for due diligence. There are a number of tools that can be utilized to accomplish this and include free file-sharing services however, they often do not have the features required to protect confidential information. Some of these tools also tend to have a clunky interfaces, which can cause frustration for investors who are considering investing.

The content of your investor data room will be contingent on the stage your business is in. However, it should contain your Confidential information Memorandum (CIM) and a comprehensive timetable for virtual data rooms your company’s growth, and a list of all current investors. A section on competitor analysis is beneficial to show your ability know the market and your immediate competitors. Additionally, a team section with the exact titles, salaries, and job descriptions of all current team members is vital.

In addition to the previous, you may need to include a client references and referrals section, as well as a one-pager that describes your branding and marketing goals. It should also include the pitch deck that you designed for your business and a summary of all media coverage that you have received for your startup. You should also create an area for any inquiries that potential investors may have. In answering these questions in a timely manner can speed up decision-making.