https://dataroomlabs.info/confidentiality-at-its-best-virtual-data-rooms-unleashed/
A data room is a secure space to store confidential documents of a sensitive or confidential nature during due diligence in M&A transactions. Before physical rooms were utilized for this purpose, but with the technological advancement, virtual data rooms have become increasingly popular and offer the same level of security as traditional methods.
Having access to a detailed investor data room can help founders move quickly on a deal since investors will be able to examine the documents in a matter of hours, not weeks or months. New entrepreneurs may find it difficult to determine what information they should include in their investor data room. Luckily, there are basic guidelines that can serve as an excellent starting point.
Investors are looking for the most important data points that can provide them with a greater understanding of your business. This could include your financials along with market research and an enlightened presentation of your business plan. It’s also important to remember that the amount of information that you need to provide investors will depend on the stage that your business is at. For instance, a young start-up may need to show fewer financials than a Series A business.
It’s important to avoid sharing data that is not well-organized or unique because this could make it difficult for investors to follow the data. Also, it’s not helpful to share non-standard charts or graphs as long as they aren’t adding any nuance to your presentation. The best way to do this is to focus on presenting key metrics in a way that investors can comprehend (e.g. or highlight engagement or retention cohorts).