You’ve just had an amazing pitching with an investor, and now they’re wanting to do more due diligence. You’ve heard about this being common and that a well-prepared data room can help you accelerate the process of fundraising.
It is essential to provide a secure online location where they can view confidential documents. The documents are accessible from any device and downloaded, including mobile devices. The goal is to allow for a fast and secure, transparent and safe review of the most important due diligence documents for potential investors. You can also monitor the activity within your VDR including who is viewing which files, and for how long.
It is crucial to organize your dataroom to meet various requirements and needs. You’ll want to include only the necessary information for stage 1 due-diligence (e.g. the market fit of the product and financial model). However, you’ll need to provide more detailed information for stage 2 due diligence, such as documents related to the company, securities-related documents materials agreements, as well as staff bios.
You’ll need to determine who has access to your data room, such as administrators, regular users and guests. You’ll also need to consider whether you need a version control, which permits you to monitor any changes made to documents and ensure that your team members are using the most recent version of any document. Also, you’ll need select a vendor that provides a virtual data room solution that can meet your specific business requirements. Find a company that has auditing capabilities, such as in the event that your business requires to know who has access to the files and how long.