Investor data rooms are secure virtual spaces that companies utilize to share sensitive data with buyers and advisors during the due diligence phase of M&A deals. These rooms are usually secured and monitored continuously to ensure that the information within them does not fall into the unintentional hands of. Top virtual data rooms offer due diligence checklists that can be used to simplify the process of collecting documents and ensure they are collected in a secure manner.

Documents you need to include in your data room will vary according to your specific situation and the transaction. However, there are a few documents that are essential to every dataroom:

Legal Information: This consists of documents that incorporate intellectual property registrations, as well as employee stock agreements. Also included is the cap table which lists ownership stakes as well as percentages of your company. Founders can choose to include old updates from investors which can convince investors that they have taken serious the importance of transparency and communication for investors.

Financial Information This includes the financial statements of the past and the future and provides sources, assumptions, and reasoning behind those projections. Founders may include their product roadmap and business plan.

Founders have the option of breaking the investor data space into sections and limit access to different users roles. For example, a section could contain documents on strategy and pitch decks that are accessible to investors in the early stages, while the other section will include more detailed legal documents for investors who are more serious. This lets them save valuable time by only sharing documents that they require and also allows them to have greater control over the sensitive information they share.

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