You’ve a great pitching session and follow-up meeting with a VC or investor who would like to have more specific information on your business’s structure such as traction, financials and traction. You can set up a virtual data room instead of sharing an Excel spreadsheet.
A data room is an online repository of documents which allows users to browse documents at the same time from multiple locations without the need to create copies or reveal sensitive information. This is essential when performing due diligence because it minimizes risk for both parties. It also allows for sharing information with stakeholders outside of the organization who might not have the same access as internal employees.
Begin by creating an organization structure that is compatible with the needs of your company or transaction. Additionally, you can use search functions to help users locate files based on keywords or other characteristics. Another feature that is useful is the control of version, which allows you to monitor changes made to specific documents within the data room. This can assist you in avoiding any confusion with users that may occur when you provide them with an outdated version of an item.
Once you’re satisfied with your folder structure, upload your documents and start the due diligence process. Be sure to provide the appropriate access level to each party by adjusting access rights and viewing history in the settings menu for the data room. Having the information in a secure area will make it easier to speed up the process and increase the chances of closing the deal.
www.dataroomreview.org/virtual-data-room-solutions-for-changing-simple-workflow