A data room is a secure place for site storing confidential documents and files used in business. They are typically used in mergers and acquisitions (M&A) as well as due diligence, fundraising, IPOs, legal proceedings, and general storage and sharing of files. Data rooms are typically based on software-as-a-service (SaaS) and offer bespoke features such as document tracking, watermarking and more to protect sensitive information. Traditionally physical data rooms held documents in hard copies; however today, most data rooms are hosted online.
Investor data rooms allow you to add more detail to the story and the vision of your company by providing evidence of what you’ve achieved so far. The creation of a well-organized investor information room shows potential investors that you’re ready to go through the process, and they’re likely to see your business in a more positive light as a result.
Apart from being a great way to present your business and showcase your company’s achievements, an investor data room can also help you answer questions faster and more efficiently. You can use the search feature to find files so you don’t have to go through the entire collection.
You can also choose which information you would like to keep secret and what information you would like to reveal. You can customize the information to each audience. For instance, if you’re going through an M&A process, you could discuss your strategic plan and vision with investors but keep the intellectual technology and intellectual property private to the buyer. This may accelerate the process and help you close the deal quicker.