A investor or VC has expressed an interest in your startup and you are looking to move forward with the investment process. A virtual data room is needed at this point to share more detailed documentation about your business model, company’s strategies, traction, and financials. This huge collection of documents should be tracked, organized and easily accessible. This service can be provided by a private equity platform. It is crucial to choose a platform that provides security, tracking, and granular control of permissions to ensure that the right information reaches the correct stakeholders.

Investors might also have to review your shareholder agreements, articles and consolidated balance sheets. Making this information accessible in a data room that is virtual will speed up the due diligence process and lead to a quicker decision and a better term sheet presentation. Additionally, if your investors are from the same industry or network, having this information at their fingertips will help build confidence in your team and your business.

Only include documents that are relevant and current in your investor data rooms. Don’t include outdated or irrelevant information that slows down the review of the investor and https://vdrwebsolution.com/the-pros-and-cons-of-vertical-consolidation-for-business create confusion. It’s a good idea include an instant messaging or commenting feature within the virtual data room so investors don’t have to leave the platform in order to ask questions or decide whether they want to decision that’s not.