You’ve just had a great pitching with an investor, and now they’re wanting to conduct more due diligence. You’ve likely heard that this is a common practice and that having a properly created data room can help speed up fundraising.
You must provide a secure online location where they can view confidential documents. The documents can be accessed from any location and downloaded, even mobile devices. The aim is to provide an efficient and transparent examination of crucial due diligence documents for potential investors. You can also monitor activity within your VDR for information on who is examining which files, and for how long.
It is essential to arrange your dataroom according to different requirements and demands. For instance, you’ll need to include the bare minimum of information needed for stage 1 due diligence (e.g., product-market fit financial model, cap table). You’ll need to provide more detailed information to stage 2 of due diligence. This includes documents related to the company, securities documents, material agreements and bios of staff.
You’ll need to decide whether you want to open your dataroom to regular users, administrators, or guests. You’ll also have to decide whether you require a version control, which permits you to monitor the changes made to a document and ensure that your team members are using the latest version of any document. Additionally, you’ll have to choose a vendor that offers an online data room service that will meet your specific requirements for your business. For example, if you require to determine who is looking at what files and for how long, look for an auditing service provider. capabilities.