You’ve a great pitching session and follow-up meeting with an VC or investor who would like to see more granular data on your business model, traction and financials. Instead of giving them a link to a spreadsheet, you can create a secure data room and invite the person to review it.
A data room is a repository for files that allows individuals to access documents from different locations simultaneously without the need to copy or expose sensitive information. This is crucial during due diligence, as it reduces the risk to both parties. It also makes it easier to share information with other stakeholders who might not have the same access to information as internal employees.
To launch a data room, begin by setting up an organizational structure that is compatible with the needs of your company or transaction. You can also use the search function to assist users locate files using keywords and other attributes. Another feature that is useful is the control of version which lets you keep track http://dataroomreview.org/what-database-is-right-for-my-business/ of changes made to specific documents within the data room. This can help to avoid miscommunications if you send users an outdated version of the document.
Upload your files once you are satisfied with the structure of the folder. Then, you can begin the due diligence process. You can modify the permissions assigned to each party and the viewing history from the settings in the data room. Having this information organized in a secure place will help you expedite the process and increase the chances of closing the deal.