Also known as: virtual data room, VDR, due diligence room

Data Room

FoundationalFundraisingOperations

Definition

Data Room: A data room is a secure online repository where companies share confidential documents with potential investors, acquirers, or partners during due diligence. It includes financials, legal documents, contracts, IP information, and other sensitive materials.

Example Usage

“We set up a data room with two years of financials, all customer contracts, and IP documentation for our Series B.”

Common Misconceptions

Data rooms are only for acquisitions. They're used for any significant due diligence including funding.

More documents is always better. Organized, relevant documents make better impressions than volume.

Data rooms are one-time setups. Keep them updated as your fundraising backbone.

Related Terms

Due Diligence

Due diligence is the investigation process investors conduct before finalizing an investment. It typically covers financials, legal matters, technolog...

ConceptualFundraisingOperations

Term Sheet

A term sheet is a non-binding document outlining the key terms of a proposed investment, including valuation, investment amount, board composition, li...

ConceptualFundraisingDocuments

Pitch Deck

A pitch deck is a presentation that gives investors an overview of your business, typically covering the problem, solution, market size, business mode...

FoundationalFundraisingDocuments

Related Tools

DocSend

Securely share documents with real-time insights.

Dropbox

Cloud storage and file sharing platform.

Google Drive

Cloud storage and file sharing for teams.

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Data Room

Definition

Example Usage

Common Misconceptions

Related Terms

Due Diligence

Term Sheet

Pitch Deck

Related Tools

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