A business data room (BDR) is a virtual repository used to store private business information. They are often utilized for M&As, IPOs, fundraising rounds, and other types of corporate transactions. Only those with access rights can view or read the data in a data room.
It’s not uncommon for an investor to ask to see your data rooms following a first meeting. This could include everything from intellectual property to technology stacks, and even additional documents for the company.
A well-organized data room for investors can leave an impression on potential investors. It shows that you are prepared and organized, and will increase their confidence in the management and operation of your company. It also allows you to respond quickly when due diligence teams ask questions. In your data room, it’s important to note that sharing non-standard analyses such as a fragment of the profit and loss statement, rather than the entire document and is not useful. A clear and concise title should be used to explain what each slide’s purpose is, and any unconventional analyses are only required to support a particular point. This will prevent your investors from getting lost while reading the content and enabling them to finish their review in the shortest time possible.