A data room is an online repository that secures the storage and sharing of sensitive business data. Most often used during 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 more efficient as it allows multiple parties to read and comment on documents simultaneously. Although there are a lot private equity firm of free file sharing tools available but they are not designed to handle the security demands that come with storing and managing confidential business data. They are not equipped with the levels of permission options, auditing capabilities or watermarking capabilities that a specifically designed VDR offers.
What you put in your dataroom can vary depending on the stage of business. There are a few important things that investors can expect. These include:
1. The company’s history and its growth. This could be a brief section that highlights the history of your business or a single page of a brief description of your marketing and product objectives and key growth metrics or a more thorough section that highlights your business’s growth patterns, market research, including engagement and retention metrics for customers.
2. Team and organizational charts. This includes the number of team members, their roles and their salaries as well as titles and titles. This information is essential to share with investors to help them understand the strengths of your team and how you intend to scale your business.
The most important thing is to keep your data safe and secure by using a purpose-built data room application like Firmex. This will make funding and M&A easier, safer, and more efficient.
