If you’re planning to sell your company or raise funds, it’s likely you have a large amount of documents and information to communicate with potential investors. A virtual dataroom, also referred to by the term due diligence data room, is an online repository that enables you to securely store and share information as well as documents with the right people, at the appropriate time.
The benefits of a virtual dataroom include:
Secure storage and sharing of sensitive information: Using a virtual data room allows you to securely share your data with a variety of stakeholders while ensuring who has access to what. This speeds up the due diligence process and decreases the risk of sensitive information being leaked.
Improved collaboration: A virtual data room makes it easier for team members to collaborate on projects even if they’re in different places. It’s also easy to manage access and permissions for projects, so that only the correct individuals have access to the right information.
Easy-to-use interface: Choosing a platform with reviews from users and an interface that is not a plugin and compatible with your software requirements will make it easier for users to get their software up and running. You should also choose an option that provides 24/7 customer support to receive assistance swiftly if you encounter any issues.
Choose which documents you’ll include in your dataroom. You’ll need to include legal and financial documents, like financial statements contracts, financial statements, and intellectual property documentation. You’ll want to include the cap table that lists how the value of each investor’s stake in your business.