Data room
A single organised, access-controlled place holding every document an investor or acquirer needs.
Example
Incorporation documents, cap table, financials, key contracts, IP assignments.
Important
Preparing it before you start raising shortens diligence and signals competence. Assembling it in a panic mid-process does the reverse.
Related terms
- Due diligence — The investigation a serious investor or acquirer runs before completing a deal — financial, legal, technical, commercial.
- Term sheet — A short, mostly non-binding document setting out the main terms of an investment before the full legal documents are drafted.
Lessons that explain it
- How an acquisition actually runs — Approach, LOI, diligence, negotiation, close. The exclusivity clause is where founders lose their leverage. (12 min)
- The fundraising process end to end — Prepare, list, introductions, first meetings, partner meeting, diligence, term sheet, legals, close. Three to six months, run as a process. (15 min)
- Due diligence — What investors check before wiring, and the four things that most often kill a deal at this stage. (12 min)
All 176 terms in the Founder glossary