A data room is an online platform that enables companies to conduct due diligence, share documents, and hold Q&A sessions in a safe, controlled environment. It is utilized by a variety of industries and is a click to read vital tool in M&A, fundraising, IPOs and joint ventures. Data rooms are commonly used to store and share large, confidential files with a variety of parties.

Whether you’re raising funds, looking to expand your market, or simply sharing information with customers The content you present through the data room can vary by stage and will be based on the overall narrative you’re supporting. There are best practices you can use to create a compelling data room presentation.

Avoid leaking confidential data to people who shouldn’t know about it. This is among founders “worst fears” and is a possibility when they’re not cautious. If you’re trying to raise funds for an A Series, don’t divulge your entire investor information to people who aren’t interested in investing. This trickles the process and could sour the momentum.

Be sure that the platform you choose to use can be easily accessed and you can consider using a data room service provider that is PCI DSS compatible. This industry standard mandates strong security, including secure data storage and access control encryption of communications, as well as regular security tests. It is important to track who has viewed what. Document versioning is the simplest and most efficient method of doing this.