A data room is a secure platform that allows multiple users to access and browse the same documents. It is typically utilized to perform due diligence in mergers and acquisitions, fundraising, and corporate restructuring. There are many cloud services that provide storage for data rooms, such as Quoroom, iDeals, DataSend or Docsend for example, and it is important to do your research before selecting one. Make sure the service you select offers templates, ways to organize your files and make sorting them out more easily, bespoke analytics, watermarking of documents downloaded, and providing a secure cyberspace.
When designing an investor dataroom the founders must think about the types of information that investors want. It is generally suggested to include the following sections:
Documents related to company formation/organization: These include articles of incorporation (bylaws) as well as business certificates, tax information, and any other documents investors may require to verify the legitimacy of a new company.
Financial Information In this section are the projected and historical financials, as well as the assumptions and sources that were used to make the projections. Founders may also wish to include a pitch deck or whitepaper in this section.
Founders can also opt to add an “Other” section, which contains any other information an investor may require, like intellectual property, technology stacks and additional documentation for https://www.hkdataroom.com/what-is-virtual-data-room-software the company. Having a clearly organized and comprehensive investor data room will make investors feel more confident that there aren’t any hidden unexpected issues or questions that remain unanswered, which can lead to quicker deals and higher valuations.
