You’ve had a successful pitching session with an investor and they’re looking to conduct more due diligence. You’ve heard that this is common and that a well-organized data room can speed up the fundraising process.
It is essential to provide a secure online space where users can access confidential documents. These documents are accessible from any device and downloaded, including mobile devices. The goal is to allow potential investors to be able to access due diligence documents in a secure way, and in a transparent and efficient manner. You can also track activity within your VDR by determining who is viewing which documents and for how long.
It is essential to arrange your dataroom according to different requirements and demands. For instance, you’ll need to include the bare minimum of information needed for stage 1 due diligence (e.g. the product-market fit, financial model and cap table). You’ll be required to provide more comprehensive information for stage 2 due diligence. This includes documents for the company, securities-related documents, material agreements, and bios of staff.
You’ll have to decide if you wish to give access to your dataroom to regular users, administrators or guests. You’ll also need to consider whether you need to use version control, which permits you to monitor changes made to a document and ensure that your team members are working with the most recent version of any file. You’ll also need to pick the vendor that provides an online dataroom solution that can meet your needs as a business. Choose a vendor that has auditing capabilities, for instance for https://andvdr.com/ your business if you need to know who has access to the files and how long they’re.