A data room is an online storage facility which is secured and secure in the way it stores and shares sensitive business information. Most often, it is used for due diligence, M&A or capital raising and capital raising, it prevents sensitive documents from falling into the hands of unwanted third parties. It also makes the process of closing deals more efficient because it allows different parties to look over and comment on information simultaneously. There are numerous free file sharing software applications available. However they are not designed to meet the security demands of keeping and managing confidential data. They do not have the same level of permission settings, auditing capabilities and watermarking that a purpose built VDR can provide.
Depending on the stage of your business, what you include in your data room may be different. However there are a few fundamental items that investors are likely to want to be able to see. These include:
1. Company history and growth. This could be a short section that details your company’s genesis story, a one-page summary of your marketing and product goals and the most important growth metrics, or a more thorough section that details your business’s history and growth trends, as well as market insights (including engagement and customer retention metrics).
2. Charts for organizational and team members. This includes the current number and position of your team members, as along with their salaries and www.myvdronline.com/a-step-by-step-guide-to-using-a-data-room-with-an-external-company/ titles. It is crucial to communicate this with your investors so they have a better understanding of the strengths of your team as well as the ways your company intends to expand.
Most importantly, remember to keep your data safe and secure by using a purpose-built data room software such as Firmex. This will enable funding and M&A more secure, easier and more efficient.