You’ve had a successful pitching session, followed by a follow-up meeting with an VC or investor who wants to see more granular data on your business’s structure including traction, financials and more. You can set up an online data room instead of sending an Excel spreadsheet link.

A data room is an online repository of documents which allows users to browse documents at the same time from multiple locations without having to make copies or disclose sensitive information. This is crucial when performing due diligence because it lowers the risk for both parties. It also makes it easier to share information with stakeholders outside of the organization who might not have the same access as 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 attributes. Version control is another useful feature that allows you to monitor changes made to documents in the dataroom. This can help you to avoid miscommunications when you provide users with an old version of the document.

When you’re satisfied with the folder layout, upload your files and start the due diligence process. Be sure to provide the right level of access to each person by changing permissions and viewing history in the data room settings menu. This will allow you to expedite the process, and increase your chances of completing an agreement.

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