A data room is an online repository that secures the storage and sharing of sensitive business information. Most often, it is used for due diligence, M&A or capital raising it can help prevent sensitive documents from falling into the hands of unwanted third parties. It makes the process of closing deals more efficient because it allows multiple parties to review information and make comments simultaneously. There are many free file sharing software applications available. However they are not designed to meet the security demands of storing and managing confidential information. They aren't equipped with the levels of permission settings, auditing capabilities and watermarking that a custom-built VDR offers.

What you include in your dataroom will differ based on the stage of business. There are a few important elements that investors should expect. These include:

1. History of the company and growth. This can be a short section that highlights the history of your business, a 1-pager outlining your marketing and product objectives and key growth metrics, or a more thorough section that highlights your business's growth patterns, trends, and market insights, such as engagement and retention metrics for customers.

2. Charts of the team and the organization. This includes the number of team members, their role and their salaries as well as titles and titles. It is important to communicate this information with your investors so that they can get an understanding of the team's strengths and how your business plans to scale.

Make sure to use a data room software like Firmex that is specifically designed for the purpose of keeping your information safe and secure. This will make the process of funding and M&A easier, safer private equity firm and more efficient.