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A data room can be an effective tool to speed up the process of financing your business. It can house confidential business data such as revenue projections, IP ownership documentation, detailed financial records, and more. Being able to access all of the information in one place will help investors conduct due diligence, assess your company’s performance and make an informed investment decision.
As founders, you should always be mindful of your aim to make your investor’s life as easy as is possible. The longer investors spend searching for the information they need the less likely they will be able to provide you a term sheet. This means not only making the data room as easily accessible as it can be (which can be accomplished with several tools, like DocSend’s Chrome plugin) and also keeping it simple.
To make it easier for your counterparties and acquirers alike to navigate your data room, you should arrange your folders with an indexing system that allows them to find the content. Share conventional analyses instead of unconventional ones. Non-standard analyses can confuse your counterparties, and create confusion when trying to understand the data.
Another option to ease the burden on your counterparties is to include an extensive user manual and training sessions for your data room. These training documents can help users learn how to navigate and access your data more effectively and reduce the risk of data being mishandled or misinterpreted.