A investor or VC has expressed interest in your startup and you’re ready to go ahead with the process of investing. A virtual data room will be needed at this point to present more detailed documentation about your business model, corporate strategies, traction, and financials. This massive collection of documents requires to be tracked, organized and easily accessible. A private equity platform can offer this feature, and it is crucial to search for a service that offers security and tracking, as well as granular permission controls to ensure that the right information gets into the hands of the appropriate people.
Investors may also want to view your shareholder agreements, articles and consolidated balance sheet. The information https://vdrwebsolution.com/the-pros-and-cons-of-vertical-consolidation-for-business available in a virtual area will help streamline due diligence process, which will result in an easier decision and a quicker term sheet presentation. Additionally, if your investors are in the same industry or network and have this information available, having it at their fingertips will allow them to build confidence in you and your company.
It is important to include only relevant and current documents in your investor data room. Don’t include outdated or irrelevant information that slows down the review of the investor and create confusion. It is a good idea to have short messaging or commenting features integrated into the virtual data room to ensure that the investor does not need to leave the platform in order to ask a question or to make notes of something.