You’ve had a fantastic meeting with an VC But they’d like to see more detailed data about your business’s structure and financials. You can create a virtual data room instead of sending an Excel spreadsheet link.
A data room is an online repository of documents which allows users to browse documents at the same time from multiple locations without needing to make copies or reveal sensitive information. This is essential during due diligence, since it reduces the risk for both parties. It is also easier to share information with externally-facing stakeholders who may not have access to internal employees.
To set up a data room start by setting up an organizational structure that is compatible with the needs of your business or transaction. You can also utilize the search function to help users locate files based on keywords or other attributes. Version control is another useful feature that lets you monitor the changes that are made to documents within the dataroom. This can help to avoid miscommunications when you provide users with an outdated version of the document.
Once you’re satisfied with your folder layout, upload your files and start the due diligence process. Be sure to provide the appropriate access level to each party by adjusting permissions and viewing history within the settings menu of the data room. Having this information organized in a secure location will speed up the process and increase the chances of closing the deal.