You’ve just had an amazing pitching with an investor, and now they want to conduct more due diligence. You’ve likely heard that this is a common practice, and that a well constructed data room can accelerate the process of fundraising.
It is essential to provide a secure online space that www.andvdr.com/what-are-the-types-of-due-diligence/ allows users to view confidential documents. The documents can be accessed from any location and downloaded, including mobile devices. The aim is to provide an efficient and secure, transparent and safe review of the most important due diligence documents for investors who are looking to invest. You can also monitor the activity in your VDR. For example, you can see who is viewing files and for the length of time.
The most important thing is to organize your data room in a way that accommodates different needs and requirements. For example, you’ll want to include only the minimum of information required for stage 1 due diligence (e.g. product-market fit, financial model and cap table). You’ll require more specific details for the second stage of due diligence. This includes company documents, securities related documents, material agreements and bios of the staff.
You’ll need to decide whether you want to allow access to your dataroom to regular users, administrators or guests. Also, you’ll need to consider whether you require a version control, which allows you to keep track of the changes made to a document and ensure that your team members are using the latest version of any document. Also, you’ll need select a vendor who offers a virtual data room solution that is tailored to your requirements for your business. Find a vendor that has auditing capabilities, for instance when your company needs to know who is viewing which files and for how long.