You’ve had an excellent meeting with an VC, but they want to see more details regarding your business’s model and financials. You can set up a virtual data room instead of sending an Excel spreadsheet.
A data room is an online document repository that allows users to view documents at the same time from multiple locations without the need to create copies or disclose sensitive information. This is crucial during due diligence, since it reduces the risk to both parties. It is also easier to share information with externally with stakeholders who might not have the same access to internal employees.
Start by creating the structure of your folders to meet the requirements of your business or transaction. You can also use the search function to help users find files based on keywords or other characteristics. Version control is an additional useful feature that allows you to keep track of changes made to documents within the dataroom. This can ensure that you don’t have any miscommunications with users that could occur when you provide them with an old version of an item.
Once you’re happy with the folder structure, upload your documents and start the due diligence process. Make sure you give the appropriate level of access to each party by adjusting permissions and viewing history within the settings menu for the data room. This information will allow you to speed up the process and increase your chances of completing a deal.