You’ve had a fantastic meeting with an VC however, they would like to know more specific information about your business’s structure and financials. Instead of delivering them a link to a spreadsheet, you can create a secure virtual data room and invite them to look over it.
A data room is an online repository of documents that allows users to access documents from multiple locations without the need to create copies or divulge sensitive information. This is important during due diligence since it lowers risk for both parties. It is also easier to share information external stakeholders who may not have the same access to internal employees.
To set up a data room, begin by setting up the structure of your folders to match the requirements of your business or transaction. You can also make use of the search function to help users locate files by keywords or other characteristics. Another feature that is useful is the control of version which allows you to keep track of changes made to individual documents in the data room. This will help you to avoid miscommunications in the event that you send users an old version of the document.
Once you’re happy with your folder structure, upload your documents and begin the due diligence process. Be sure to give the right level of access to each party by adjusting access rights and viewing history in the settings menu for your data room. Having this information organized in a secure location can speed up the process and increase your chances of closing the deal.