What to Include in Your Data Room

A data room is a virtual storage space that securely shares sensitive business information. It is most often utilized for due diligence, M&A, or capital raising. It can help prevent sensitive documents from falling into wrong hands. It also https://www.myvdronline.com/whats-a-private-equity-firm makes closing deals more efficient because it allows several parties to view and discuss information at the same time. Although there are a lot of free file sharing tools available, these tools are not set up to handle the security requirements associated with the storage and management of confidential business information. They do not have the same level of permissions or auditing capabilities. They also do not have the same watermarking that is available in a VDR.

What you include in your dataroom may differ depending on the stage of your business. However there are a few important elements that investors would expect to be able to see. These include:

1. History of the company and growth. This could be a brief section outlining your company’s founding story, a one-page summary of your marketing and product vision and the key growth metrics, or a more comprehensive section showing your business’s history, growth trends and market research (including engagement and customer retention metrics).

2. Team and organizational charts. This includes the number of team members, their roles and their salaries as well as titles and titles. It is crucial to communicate this information with your investors so that they can get an understanding of the strengths of the team and the ways your company intends to grow.

Be sure to utilize a data room solution like Firmex which is designed for the purpose of keeping your information secure and safe. Doing so will aid in the process of funding and M&A much simpler and more secure.