http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/
A data room for investors is a safe online space that allows businesses typically startups to disclose sensitive information to potential investors during the due diligence process. In the past these rooms were physical spaces, but nowadays they’re almost always virtual.
The contents of an investor’s data room can vary, but it will typically include a mix of legal and commercial documents. The first is a reflection of the business’s performance and future prospects, while the second allows investors to tick off certain boxes as part of their investment process.
A well-organized and organized data room can aid in making due diligence more efficient. It will also assist a startup to stand above its competition to investors who are interested in investing.
In order to present a well-organized and efficient investor data room the startup needs to select the right content to include. The content can vary, but it may include growth metrics that demonstrate the ability of the business to grow financial statements that show the economics of the business, and cash flow forecasts that will help in the future liquidity. This could include data on user engagement and valuation tables as well as intellectual property portfolios.
Include a short section that explains the brand of the company and its marketing strategy. This will allow investors to take a quick look at the company’s character and vision and may even prompt some questions which they can ask later on. Selectiveness is key as too much content can divert investors from examining the core areas of a company.