What to Include in Your Data Room

A data room is a storage space that securely shares sensitive business data. Most often, it is used for due diligence, M&A or capital raising and capital raising, it prevents sensitive documents from falling into the hands third parties. It also makes closing deals more efficient because it allows multiple parties to read and comment on the same information. While there are a variety of free tools for sharing files however, they are not set up to handle the security demands that come with the storage and management of confidential business data. They don’t have the same levels of permissions as well as auditing capabilities and watermarking features as a VDR.

What you include in your dataroom can depend on the stage of your business. However there are a few core items that most investors are likely to want to be able to see. These include:

1. The company’s history and growth. It could be a short section that details your company’s genesis story, a 1-pager highlighting your marketing and product goals and key growth indicators, or a more comprehensive section that outlines your company’s history and growth trends, as well as market research (including engagement and retention metrics).

2. Charts for organizational and team members. This includes the current numbers and roles of your team members as well as their salaries and titles. This information is important to share with investors to enable them to understand the strengths of your team and the way you plan to expand your business.

The most important thing is to keep your information safe and secure by using a custom-built data room solution such as Firmex. This will enable the process of funding and M&A more secure, easier and more efficient.

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