If you’re planning to sell your company or raise funds, it’s likely that you have a lot of data and documents to give potential investors. A virtual data room, also known as a due diligence data space is a digital repository where you can securely store files and information with the right people at the right time.
The benefits of a virtual data room include:
Secure storage and sharing of sensitive information: Using a virtual data room lets you securely store and share your data with multiple stakeholders while ensuring who has access to what. This can speed up the due diligence process and reduces the chance of sensitive information being exposed.
Collaboration is enhanced: A virtual data room allows team members to collaborate on projects even if they’re located in different locations. It’s also simple to manage access and permissions for projects to ensure that only the right people have access to the information they need.
Simple-to-use interface: Selecting a platform with reviews from users and an interface without plugins that is compatible with your software’s requirements will make it simpler for users to get their software up and running. In addition, choose a platform that provides 24/7 assistance, so that should you run into any issues, you can get help quickly.
Decide what documents you’ll include in your data room. You’ll need to include legal and financial documents, like financial statements, contracts and intellectual property documents. It is important to include the cap table that lists how much each investor owns of your company.