Using a Data Room for Investment Deals
You’d like to continue the investment process after a VC or investor expressed interest in your company. A virtual data room is required at this point to present more specific information about your business model, corporate strategies such as traction, financials, and traction. The vast amount of documentation must be tracked and organized, as well as easily accessible. A private equity platform may provide this capability, and it is crucial to look for a platform that offers security, tracking and granular permission controls to ensure that the correct information ends up in the hands of the correct people.
Investors might also have to see your shareholder agreements, articles, and consolidated balance sheet. This information being accessible in a data room that is virtual will simplify the due diligence process, which could result in a faster decision and term sheet presentation. Furthermore, if your investors are in the same business or network, having this information at their fingertips will help them build confidence in you and your company.
Only include documents that are relevant and current in your investor data rooms. Inclusion of outdated or irrelevant information could hinder the review of investors, creating confusion and frustration. It is a good idea to have short messaging or commenting features built into the virtual data room so that investors do not have to leave the website to ask a query or take notes about something.
