A data room is an area that can be used to store confidential documents that are sensitive or to store privileges during due diligence for M&A transactions. The past physical rooms were utilized to store these documents, but thanks to the advancement of technology, virtual data rooms are becoming increasingly popular and offer the same level of security as traditional methods.

Investors can review the documents in a matter of hours rather than weeks or even months. New entrepreneurs may find it difficult to decide what information they should include in their investor data room. There are some internet guidelines that could be a great starting point.

Investors are looking for important information that will provide them with a greater understanding of your company. This could include your financials and market research as well as a clear presentation on your business plan. It's also important to keep in mind that the amount of information you have to provide an investor will vary based on what stage your company is at. A startup in its early stages will need to present fewer financials to a Series A business.

It is important to avoid sharing incomplete or unorthodox analyses which can make it difficult for investors to follow the information. Additionally, it's not beneficial to share non-standard graphs and charts as long as they aren't adding any nuance to your presentation. This can be achieved by focusing on important metrics that are easy to understand for investors (e.g. by highlighting retention or engagement cohorts).