http://virtualdataroomsoftware.net/ma-and-value-driver-analysis/

A data room can be a powerful tool for demonstrating investors the value of your business and its potential. It is typically used for due diligence in M&A deals however, it can be beneficial in fundraising, IPOs, and other investor meetings. However, the process of preparing a data room can be a lengthy and sometimes daunting task. How do you choose which documents to include What should they be arranged and grouped? And how can you define permissions for them?

As a start-up, you must share information that supports your story. This will vary based on the stage. For example companies at the seed stage might be more interested in data on market trends, regulatory changes, and compelling «why now?» forces. Growth-stage companies however, should focus on trends related to key metrics like customer acquisition, revenue and similar.

It is important to avoid providing too much information. A lot of data can be overwhelming investors, and it may indicate that your team does not know how to move the needle for the company. Be sure to ensure that the metrics you provide are representative of the complete data, not just a selective presentation (like simply displaying «bright spots»).

Using an annotation tool allows users to make their own comments and ask questions about any document in the virtual data room. This helps keep discussions on track and helps facilitate the Q&A process. To limit the risk that sensitive information is shared with a third party it is crucial to have granular permissions on documents and folders. Also, look for a company that offers various reporting tools that track user activity, such as which documents are being read and the times they are viewed.