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A data room is a powerful instrument for demonstrating the worth of your company and its potential to investors. It is typically used for due diligence in M&A deals however, it can be beneficial for fundraising, IPOs, and other investor meetings. However, the process of preparing a data room is a time-consuming and often overwhelming task. How do you decide which documents to include, how should they be organized and grouped and how do you set permissions?

As a start-up, you must share data that supports your narrative. This will differ based on the stage, for instance that startups in the early stages may need to share information on market trends, regulatory shifts and compelling “why now” forces; whereas growth-stage companies should focus on the trends in key metrics, like new revenue, customer acquisition and other similar data.

It is essential to avoid adding too much data. In fact, too much information could confuse investors and indicate that your team doesn’t understand what is needle-moving for the business. Be sure that the metrics you present are representative of all data and not just a handful (such as displaying only “bright spots”)

An annotation tool lets users to add questions and comments to any document in the data room. This keeps discussions on track and streamlines the Q&A process. Furthermore, access permissions for granularity which can be customized at the level of a folder and document are essential to minimise the risk of sensitive information being shared with third parties. Choose a service that provides a variety reporting tools to track user activity. For example which documents are most frequently viewed by users when they are.

www.virtualdataroomsoftware.net/required-information-for-virtual-data-room/