http://dataroomnote.com/what-factors-make-one-data-room-better-than-the-other/

A data room is a crucial instrument to conduct due diligence, whether raising Series A financing, or closing an acquisition, merger or investment deal. It simplifies the process of collecting documents into a single repository, and permits third parties to access the information in real-time, without having to send you emails on a regular basis or request updated copies.

While it’s tempting to fill your investor data room with everything you’ve got but be mindful not to overwhelm your potential investors. A lot of documents can make due diligence a long and tedious process for both parties. A well-organized and organized dataroom is vital for ensuring that investors can quickly and efficiently review the financial health of your business as well as operational strategy and legal standings.

Investors will be interested in your company’s projected and historical financial statements. They’ll also be looking for the origins of any assumptions or modeling and the reasons behind the assumptions or models. You could also include a list or past financing agreements, capitalization tables and other data. Founders with a strong enough pitch to draw VC interest often upload a copy of their pitch deck in their data room, too.

Your investor data room should have clearly defined headlines for each slide. If the titles of a technical slide display are unclear or inaccurate it may be difficult for investors to understand. Avoid using non-standard analyses in place of the standard ones (e.g. showing just a portion of a Profit & Loss statement as opposed to a full one).