A data room is a safe space to store confidential documents of a sensitive or privileged nature that are required for due diligence in M&A transactions. The past, physical rooms were used to store these documents, but with the technological advancement virtual data rooms have become increasingly popular and provide the same level of security as traditional methods.

Investors will be able review the documents within a matter of hours rather than weeks or even months. New entrepreneurs may be unable to decide what information they should include in their investor data rooms. Fortunately, there are basic guidelines that could be an excellent starting point.

Investors are looking for important data points that can provide them with a better understanding of your business. This could include your financials along with market research and a clear presentation of your business plan. Keep in mind that the amount of information you present to an investor is contingent on the stage of your company. An early-stage startup will need to present fewer financials compared to a Series A-level company.

It’s essential to not share data that is not well-organized or unique which can make it difficult for investors to follow the information. It’s also not a good idea to share non-standard charts or graphs in the event that dataroomlabs.info/5-uses-for-business-intelligence-tools-in-enterprise-organizations/ they add nuance or depth to your presentation. The best method to accomplish this is to focus on presenting key metrics in a way that investors can easily be able to comprehend (e.g. by highlight engagement or retention cohorts).