If you’re looking to raise funds or simply making sure your company has all the data it needs to be successful having a virtual data space is essential. Not only does it help you organize and store files in a safe environment and also moved here helps streamline due diligence and valuation processes.
Investors and acquirers will need to access as all information as they can in due diligence to determine if an idea is worth investing in. The process can be delayed or even cancelled when the company isn’t ready to share the details. It is crucial to set up an investor data room prior requesting an investment.
The exact contents of the investor data room will differ dependent on the size of your company and complexity. One method is to create folders specifically for types of information or stages. You can create subfolders within these folders in order to organize your files.
Another factor to consider is the security level of each file. Consider setting up granular permissions to protect sensitive information. Some providers offer group rights settings that allow you to grant access to entire departments or types of professionals such as accountants and investment bankers. This can make it easier to grant access to the proper individuals and speed up the process. This is especially important when a startup goes through multiple rounds to conduct due diligence or is in the process of preparing to sell.