A data room is an online storage facility that securely stores and shares sensitive business data. It is usually used for due diligence, M&A, or capital raising. It helps prevent sensitive documents from falling into the improper hands. It also makes completing deals more efficient by allowing several parties to view and comment on the same information. There are many free file sharing programs available. However they’re not designed to meet the security demands of managing and storing confidential information. They don’t have the levels of permission options, auditing capabilities or watermarking that a specially designed VDR can provide.
What you put in your dataroom may vary depending on the stage of your business. However there are some essential items that investors would expect to see. These include:
1. Company history & growth. It could be a short section that details your company’s genesis story, a page that outlines your product and marketing vision and key growth indicators, or a more detailed section showing your business’s history as well as growth trends and market research (including customer retention and engagement metrics).
2. Charts for organizational and team members. This includes the number of team members, their role and their salaries as well as titles and titles. This information is essential to share with investors to aid them in understanding the strengths of your team and the way you plan to expand your business.
Make sure to use a data electronic data room room software like Firmex that is specifically designed for the purpose of keeping your data safe and secure. Doing so will facilitate the process of funding and M&A much simpler and more secure.