What is a Narrative Data Room? Is this a business concept and practice that will benefit my business, and does the size of my business matter? This article answers these questions and more, including a bonus resource that you will have access to, to help guide you as you shape your business's narrative.
Businesses who apply for funding from private or institutional investors are encouraged to have an investor data room prepared, in the event that an investment recommendation letter is issued for due diligence (i.e. that move to the next stage). This “room” is a tool that investors use to facilitate the due diligence. What is it? It’s a virtual, secure storage of the company’s information relevant to the due diligence process. Typically, a data room will include a collection of documents of incorporation, finances, team and stakeholders, intellectual property, technology, pitch deck, metrics, legal and any other documents relevant to the fundraising undertaking and the investor. This central and living tool, is easily shareable and employs the function of preparation for the business.
Now, just as investors have a data room for investors, I encourage a Narrative Data Room for the stories, testimonials, and visuals (in images and videos) from the various stakeholders that engage with the business, to build and strengthen the current narrative. This, in turn becomes a great investment tool for social reporting, strategic communication and ultimately, monitoring and evaluation planning.
A Narrative Data Room is a virtual, secure storage of the business’s narrative pool. It is a collection of documents and materials relevant to the business’s narrative which speaks to and proves its theory of change.
Answering what a Narrative Data Room is, let’s question its function as well as how to prepare for it.
As mentioned in the previous paragraph, this kind of “room”, is relevant to businesses who recognise the relevance of and prepare for social reporting, strategic communication, monitoring and evaluation planning. They may not have yet begun, however, understand the importance of engaging in systems that will contribute to the lack of the scramble for data when the time comes.
It is also never too late and too early to start, here are three ways that you can begin your Narrative Data Room journey:
- Choose a file sharing software like Dropbox or Google Drive, that is secure, accessible and has the capability of upgrading storage when the time comes or enables data to be easily moved to another host.
- Identify what you are going to use this Narrative Data Room for – is it to strategically communicate e.g. including these narratives in your pitch deck or website OR is it to conduct an impact report
- Map out the stakeholders who have contributed to the narrative of your business, who have positively impacted your theory of change. BONUS – Stakeholder List. This is available when you subscribe to the Venture2Value Newsletter. Click HERE.
In this room, you can include verifiable materials and documents including surveys, images, testimonials, videos, metrics that communicate outcome, output, customer/user, feedback, and stakeholder impact data.
A Narrative Data Room is all about efficiency. It is a practice that enables you to be able to have a living tool, that stores data and contributes to the accountability of the narrative of your business.
