http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/
A data room is a crucial instrument to conduct due diligence, whether raising Series A funds or negotiating a merger, acquisition, or investment deal. It lets you consolidate all of your documents in one place and let third-party users access the information at any time without the need to send an email or request updated copies.
It’s tempting but you don’t want to overwhelm your investors. A lot of documents can make due diligence a lengthy and tedious process for both parties. A well-organized and organized dataroom is vital to ensure that investors can quickly and efficiently examine your business’s financial health as well as operational strategies and legal status.
Investors will be interested in your startup’s projected and historical financial statements. They will also want to know the origin of any assumptions or modeling and the reasoning behind these. You may also choose to include a list of recent and previous financing agreements and capitalization tables. Entrepreneurs who have a compelling pitch that attracts VC interest typically put a copy of their pitch in their data room.
The most important thing is that your investor data space should have clearly defined headlines for each slide. It can be difficult for an investor to navigate through a lengthy, technical slideshow if the titles are unclear or confusing. Avoid using non-standard analyses instead of conventional ones (e.g. showing only a portion of the Profit & Loss statement instead of. an entire overview).
