You’ve had an excellent meeting with a VC however, they would like to see more detailed data about your business’s structure and financials. Instead of giving them an email with a link to your spreadsheet, you can set up a secure virtual data room and invite them to look over it.
A data room is an online document repository that allows users to access documents at the same time from multiple locations without needing to make copies or divulge sensitive information. This is crucial during due diligence because it reduces the risk for both parties. It also allows for sharing information with other stakeholders who may not have the same access as internal employees.
To launch a data room begin by creating the structure of your folders to match the needs of your business or transaction. You can also use search functions to help users find files based on keywords or other characteristics. Version control is a useful feature that lets you monitor the changes that are made to documents within the dataroom. This can help you avoid miscommunications that may occur in the event that you send users an old version of the document.
Upload your documents after you are happy with the structure of your folder. Then, start the due diligence. Be sure to give the appropriate level of access to each party by adjusting permissions and the history of viewing in the settings menu of the data room. This will allow you to speed up the process and increase the chances of closing a deal.