A data room is a safe platform that allows multiple parties to access and view the same documents. It is typically utilized to perform due diligence during mergers and acquisitions, fundraising, and corporate restructuring. It is important to research the cloud services that provide storage for data rooms like Quoroom or iDeals. Choose a provider that provides templates, methods to organize files and sort them with ease, customized analytics, watermarking downloaded files, as well as offering a secure online environment.
When creating an investor data room, the founders should consider which types of information investors are looking for. It is recommended to include the following sections.
Documents of Company Organization/Formation These include company bylaws Articles of incorporation, business certificates as well as tax information and any other documents an investor might need to confirm the legitimacy of a startup.
Financial Information: This includes projected and historical financials, as well as the assumptions of sources, reasoning and sources that went into constructing the projections. This section may also contain a whitepaper or pitch deck.
Founders can include the words « Other » in the form of any other information investors may need, including intellectual property as well as technology stacks and other documents about the company. Having a clearly organized and comprehensive investor data room can make investors feel more confident that there aren’t any unintentional issues or unanswered questions which can lead to quicker deals and better valuations.