If you’re planning to sell your business or raise funds, it’s likely you have a lot of information and files to share with potential investors. A virtual data room, also referred to as due diligence data rooms is an online repository that allows you to securely store and share information and documents with the right people at the right time.
The advantages of a virtual data room include:
Secure storage and sharing of sensitive information A virtual data room can be used to secure the storage and sharing of your data with multiple stakeholders while ensuring that you control who can access what. This speeds up the due diligence and reduces the risk of sensitive data being exposed.
Collaboration is improved: A virtual data room allows team members to collaborate on projects even if they are in different locations. It’s also easy to manage access and permissions for projects, to ensure that only the right users have access to the correct information.
Simple-to-use interface: Selecting a platform with reviews from users and an interface that is not a plugin and compatible with your software’s requirements will make it easier for users to get their software up and running. You should also choose a platform that has 24/7 customer assistance so that you can get assistance quickly if you run into any problems.
Choose what documents you’ll add in your data room. You’ll have to include legal and financial documents, such as financial statements, contracts and intellectual property documentation. You’ll also need to include a cap table which shows how the amount each investor owns of your company.