A data room is a secure online platform that lets users upload, view and examine confidential documents. These platforms are used in M&A transactions but can also be used to raise funds and for due diligence. These tools are free file sharing websites, but they usually lack the security features that are required to share sensitive information. Certain of these tools tend to have a clunky interface that can cause frustration for potential investors.

The content of an investor data space will vary based on the stage of your business, but should include your Confidential Information Memorandum, a thorough timeline of your company’s development and a complete list of investors currently. A competitor analysis section is useful for showing your ability to know the market and your immediate competitors. Finally, a team section which includes the precise titles, salaries and job descriptions for all current team members is essential too.

In addition to the previous, you may consider including a customer references and referrals section, as and a one-pager that outlines your marketing and branding goals. It should also include the pitch deck that you designed for your business as well as an overview of the media coverage that you have received for your startup. It’s also important to include an area for any inquiries that investors are likely to ask. Answering these questions in a timely manner will speed up the process of making decisions.

virtual data rooms