A business data room (BDR) is a virtual repository that stores confidential business information. They are utilized for M&As and IPOs as well as fundraising rounds and other corporate transactions. Only those with access rights can view or read data in a data room.
If you’re a founder of a startup and you’ve put together an investor deck and practice your pitch and contact investors, it’s not uncommon for a first meeting to close with a request to see your «data room.» Although there are a few debates as to what exactly comprises an investor data room (it could include everything from intellectual technology and property stacks to additional company documentation) Most agree that it should mirror the intended outcome of the funding.
A well-organized investor data space makes a good impression on potential investors and shows that you’re organized and prepared, which can boost confidence in your company’s operations and management team. It also allows you to respond quickly when due diligence teams have questions. In your data room, it is important to keep in mind that sharing non-standard data, such as a small portion of an income and loss statement, and not the entire document or the complete report, is not a good idea. A clear title should outline the purpose of each slide, and any unconventional analyses are only required to support a particular point. This will help your audience members not to lose track of the material, and will allow them to finish their review quickly.