A data room is a safe physical or virtual space that is used to share information in high-risk business transactions. They are typically used during M&A, IPOs, fundraising rounds and legal instances. A data room that is well-equipped with the latest features could be the difference between a smooth and efficient process and one that is a hassle and can hinder deal success.

The purpose of a stage 1 data space is to provide potential investors with the information they require to make an informed decision about your company. During this stage investors should ensure that the information provided in your presentation matches the figures on your financial statement.

You’ll be required to include the following essential information:

This is an essential stage in the due diligence process as it allows investors to see that your presentation deck and financial my explanation statements are in line up, which is crucial for building investor confidence. Additionally it helps to avoid any potential issues that could result from the existence of discrepancies. It’s also important to make clear about ongoing lawsuits and any other issues that could arise due to the business. Investors will be able to better know the risks they’re taking by investing in your business. This will also save them from having to come back later in the process to renegotiate terms. This is especially crucial if you’re in an highly competitive market and want to keep your price.