A data room is an online platform that enables companies to conduct due diligence or share documents, as well as organize Q&A sessions in a safe, controlled environment. It is used by a variety of industries and is an important tool in M&A transactions and fundraising, IPOs, joint ventures and legal processes. Data rooms are used to store large and confidential documents and to share them with various parties.

The information you put in a dataroom will vary depending on whether you’re trying to raise funds, expand your business, or give information to your customers. It will also depend on the overall story you’re supporting. There are some best practices to follow to create an engaging data room presentation.

Avoid divulging confidential information people that shouldn’t see it. This is one of the most infamous “worst nightmares,” and it can occur if you’re not cautious. For instance, if you are trying to raise funds for a Series A round, don’t give your entire investor data room to people who won’t be interested in investing. This can cause confusion and can sour momentum.

Ensure that your platform is easy to access and that you are using an online data room provider that is PCI DSS compatible. This is a recognized industry standard that mandates strong security measures including secure data storage, access https://webdataroom.com/support-from-the-data-room-provider/ control, encrypted transmissions and regular security testing. It is also important to be able to determine who is viewing what. The simplest and most effective method of doing this is by using document versioning.