Link
Function
The function of the Data Room is to share the relevant with potential investors. A data room is an easy way to impress investors. Ensure the content and presentation is structured, is complete, is enticing to walkthrough and contains high quality data. Do not share any proprietary code or trade secrets about the product.
Tooling
You can use online respositories such as Google Drive, Docsend.
We highly recommend Notion. Have a look at this Data Room Template on Notion.
Process
The data room is generally shared in one or two stages; high-level to create term-sheet and detailed for Detailed Due Diligence. We prefer the data room to be shared in one stage. Then it is shared in the following stage in the process:
1) Informal Meeting with Feedback
2) First Pitch, with Go/No Go
3) Data Room Shared
4) Term Sheet, with Go/No Go
5) Detailed Due Diligence, with Go/No Go
6) Deal
Finally, we found this blog on the process quite useful and this document on the terminology