A investor or VC has expressed an interest in your startup and you’re looking to begin the investment process. A virtual data room is needed at this point to present more detailed documentation about your business model, company strategies as well as financials, traction, and other information. This massive collection of documents should be categorized, tracked and easily accessible. A private equity platform can provide this capability, and it is essential to search for a provider that provides security and tracking as well as granular permission controls to ensure that the appropriate https://vdrwebsolution.com/why-is-a-data-room-important-for-investment-deals information ends up in the hands of the correct stakeholders.
Investors may also need to view your shareholder agreements, articles and consolidated balance sheet. The availability of this information in a virtual data room will simplify the due diligence process, which could lead to a quicker decision and term sheet presentation. If your investors are in the same field, or are part of a similar network, then having this information available to them can aid in building trust with your team and company.
You should only include pertinent and up-to-date information in your investor data room. Include outdated or irrelevant information to slow down the review of the investor and cause confusion. It is a good idea include short messaging or commenting features integrated into the virtual data room so that investors do not have to leave the platform to ask a question or to make an entry about something.