http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/
In the process of raising Series A funding or trying to close a merger acquisition or investment deal, the data room for investors is an essential tool to conduct due diligence. It lets you organize all documents into one location and permit third parties to access the information at any time without the need to email or request updated copies.
While it’s tempting to cram your investor data room with all the information you’ve got make sure not to overwhelm potential investors. Too many documents can make due diligence long and exhausting for both sides. A well-organized data room is key to ensuring that investors are able to quickly and easily evaluate your business’s performance, operations strategy, financial health and legal standings.
Investors will be interested in your startup’s future and historical financial statements. They will also want to know the source of any assumptions or modeling, as well as the reasons behind them. You may also choose to include an overview of your prior and current financing agreements and capitalization tables. Founders with a strong enough pitch to draw VC interest will often upload a copy of their pitch deck to their data room, too.
The most important thing is that your investor data room must have clearly defined headlines for each slide. If the titles of a technical slide show are unclear or misleading it could be difficult for investors to understand. Avoid using non-standard analytical methods instead of the standard ones (e.g. showing a small portion of the Profit and Loss statement instead of. the full report).