A data room is an online secure platform for the storage of business documents. They are utilized for a variety of business processes, such as M&A fundraising and transactions, legal proceedings, and IPOs. Virtual data rooms provide a secure distribution channel for business documents with features like audit logs, multilingual search, and mobile access to apps. They also have a variety of security features, including encryption, two-factor verification, and watermarking, which help protect sensitive data.
When selecting a data room for your company it is essential to find one that offers a free trial. This will let you test whether the software is user friendly and aligned with the needs of your business. It is also important to know whether the company provides 24/7 support, and what kind of assistance they offer.
What should you include in a data room
Based on the industry they operate in the startup data room can contain a variety of documents. In general, it’s recommended to include an overview folder with key information such as the company’s purpose, market size and growth potential, and an explanation of how their product/service solves the issue. Additionally, the founders must include a pitch deck as well as a term sheet. This will help to accelerate the due diligence process. Other sections that can be included in a Data Room comprise legal documents like articles of incorporation (trademarks and Patents), capitalization and intellectual property tables. These are particularly valuable to investors. A company should also include references and recommendations from customers.