A financial data room is the central storage of documents and information that is used for due diligence in an M&A deal. It lets buyers view sensitive information without the need to download it or provide it to an outside party, which could lead to legal issues. It is easy to secure data during due diligence using the ability to set permissions granularly by the role, folder or document.

Investors can look through a variety of documents including business plans, presentations, investor decks, statutory accounts, audited financial statements customers lists and contract details as well as product information and market research data. These documents can help investors gain a better knowledge of the company’s current financial performance and future growth potential.

Other important items investors will likely to look over include employment contracts, staff handbooks, EMI options schemes and the cap table (which lists the percentage of the company each investor owns). The ability to access these documents in an online data room can impress potential investors and help speed up the due diligence process.

It is essential for startups to select the finddataroom.com/ best investor data rooms if they want to increase their fundraising. Making sure you choose a platform that is user-friendly and features such as quick messaging, commenting and highlighter can give you an edge over competitors in showcasing to potential investors. A vdr with detailed audit trails and activity dashboards is also a great option for investors as it helps them to monitor the progress of their due diligence projects.