You’ve had a great meeting with an VC however, they would like to know more specific information regarding your business’s strategy and financials. Instead of sending them an email with a link to a spreadsheet, you can create a secure data room and invite them to look it over.
A data room is an online document repository that allows users to access documents from multiple locations without having to create copies or reveal sensitive information. This is essential during due diligence, as it lowers the risk for both parties. It also allows for sharing information with other stakeholders who might not have the same access as internal employees.
To start a data room start by setting up a folder structure that mirrors the needs of your business or transaction. You can also utilize the search function to help users find files based on keywords and other characteristics. Version control is another useful feature that allows you to keep track of changes made to documents within the dataroom. This can aid in avoiding any miscommunications between users if you send them an old version of the document.
Upload your documents after you are satisfied with the structure of the folder. Then, you can begin the due diligence process. Make sure you give the appropriate access level to each party by adjusting permissions and the history of viewing in the data room settings menu. This information will allow you to expedite the process, and increase your chances of completing an agreement.