www.virtualdataroomsoftware.net/required-information-for-virtual-data-room/
A data room is a powerful tool for demonstrating the value of your company and its potential to investors. It is used for due diligence in M&A transactions, but it can also be beneficial for fundraising, IPOs and other investor gatherings. However, preparing a data room is a tedious and often overwhelming task. What do you decide on which documents to include what should be arranged and grouped? And how do you establish permissions for them?
As a startup, you need to be focusing on sharing data that can support your overall story. This will vary based on the stage at which you are. For example, seed-stage startup companies may be more interested in information on market trends, regulatory changes and compelling “why now?” forces. Growth-stage companies, on the other hand should concentrate on trends related to key metrics, customer acquisition, revenue, and similar.
Be careful not to include too excessive information. A large amount of data could overwhelm investors, and could suggest that your team doesn’t understand how to make a difference for the company. Be sure that any metrics you provide are representative of all data and not just a handful (such as displaying only “bright spots”)
An annotation tool lets users to add their own questions and comments to any document that is in the data room. This keeps discussions on track and helps facilitate the Q&A process. In addition, access permissions that can be customized on a document and folder level is essential to reduce the possibility of sensitive information being shared with a third party. Also, search for a vendor that provides a variety of tools for reporting which track user activities that includes the types of documents being viewed and when.
