A data room is a space that allows sensitive information to be shared during due diligence and other business transactions. Data rooms are used in many industries including healthcare, finance, and IT for sharing sensitive information with potential investors. Due diligence was once done in physical rooms, but nowadays, it is conducted digitally. It requires a large amount of documents.
Investors will https://gooddataroom.com/how-vdrs-can-keep-deals-alive/ have a lot of questions about the startup’s documentation. It is the founders’ job to answer these questions in a way that makes them feel welcome and speeds the process. Start by creating a folder structure that is clear and organized with clearly defined documents organized into categories (e.g. legal, financial, contracts). The clearly labeled folders and documents helps people to find the information they require. Metadata can be added to the data room to give each document additional context.
Other useful sections that founders can include in their data room include a competitive analysis, a list of current customers and referrals, as well as a customer references/testimonials section. Lastly, a company organisation/formation section includes any documents that show how the startup is legally registered and operated. This could include articles incorporating business certificates, corporate certificates, information regarding taxation and an audited Financial Statement. This will show that the startup is a reliable and legitimate business.
