Glossary — process
Data room
A data room is a secure online folder where a startup shares confidential documents (financials, contracts, cap table, employee info) with investors during due diligence.
How it works
Modern data rooms are Notion, DocSend, Google Drive, or specialized tools like Carta. A well-organized data room signals operational maturity and speeds up DD. Standard contents: incorporation docs, cap table, financial model, last 3 years of financials, key customer contracts, employment agreements, IP assignments, and option grant records.