A data room is a virtual repository that stores and securely shares sensitive business information. Most often used during due diligence, M&A or capital raising it can help prevent sensitive documents from getting into the hands of unwelcome third parties. It makes closing deals more efficient due to the fact that it lets multiple parties review information and make comments simultaneously. There are numerous free file sharing applications available. However they’re not made to handle the security needs of managing and storing confidential information. They do not have the level of permission options, auditing capabilities or watermarking that a purpose built VDR offers.
Depending on the stage of your business, what you include in your data room could vary. However there are a few important elements https://www.myvdronline.com/ that investors would like to see. These include:
1. The company’s history and growth. This can be a short section that highlights the history of your business, a 1-pager outlining your marketing and product objectives and key growth indicators, or a more thorough section displaying your business’s growth trends, past and market research, including customer retention and engagement metrics.
2. Charts for organizational and team members. This includes the current number and role of your team members as well as their salaries and titles. This information is vital to share with investors to enable them to understand the strengths of your team and the way you plan to expand your business.
Most importantly, remember to keep your information safe and secure by using a custom-built data room service like Firmex. Doing so will facilitate the process of funding and M&A more simple, safer and more efficient.