A data room is an online repository that securely stores and shares sensitive business information. It is typically used in due diligence, M&A or capital raising as it helps to prevent sensitive documents from getting into the hands third parties. It also makes the process of closing deals more efficient because it allows different parties to look over and discuss information at the same time. There are numerous free file sharing applications https://www.myvdronline.com/whats-a-private-equity-firm available. However they are not designed to handle the security needs of the storage and management of confidential information. They don’t have the same level of permission options, auditing capabilities or watermarking that a custom-built VDR offers.
What you include in your dataroom may differ depending on the stage of your business. There are several key things that investors are likely to look for. These include:
1. The company’s history and its growth. This can be a short section highlighting the founding story of your business or a one-page summary of your marketing and product goals and key growth metrics, or a more comprehensive section displaying your business’s growth trends, past and market insights, including engagement and retention metrics for customers.
2. Organizational charts and team charts. This includes the number of team members, their role and pay as well as titles and titles. This information is crucial to share with investors to enable them to understand the strengths of your team and the way you plan to grow your business.
Most importantly, remember to keep your information safe and secure by using a custom-built data room software such as Firmex. Doing so will make the process of funding and M&A much easier and more secure.