A data room is an online storage facility that is secure and safe for sharing sensitive business information. Most often, it is used for due diligence, M&A or capital raising, it helps prevent sensitive documents from falling into the hands third parties. It makes closing deals more efficient because it allows multiple parties to look over the information and provide comments simultaneously. Although there are a lot of free file sharing tools, these tools are not designed to handle the security requirements associated with the storage and management of confidential business data. They are not equipped with the levels of permission settings, auditing capabilities, or watermarking that a custom-built VDR offers.
Depending on the stage of your company, what you include in your data room may differ. There are a few key things that investors can expect. These include:
1. History of the company and growth. This could be a brief section outlining your company’s founding story, a page that outlines your marketing and product vision and key growth indicators, or a more in-depth section detailing your business’s past, growth trends and market research (including engagement and retention metrics).
2. Team and organizational charts. This includes the number of team members, their role and their pay as well as titles and titles. It is important to communicate this information with your investors, so they can get an understanding of the strengths of the team and the way your company plans to scale.
Be sure to utilize a data room solution such as Firmex that is specifically designed for the purpose of keeping your information secure and safe. This will enable the process of funding and M&A easier, safer, and more efficient.
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