You’ve had a fantastic meeting with a VC, but they want to see more detailed information about your business model and financials. You can set up a virtual data room instead of sending an Excel spreadsheet.
A data room is a virtual file repository that allows individuals to access documents from various locations at the same time without committing copies or exposing sensitive information. This is essential when performing due diligence as it reduces risk for both parties. It also allows for sharing information with other stakeholders who might not have the same access to information as internal employees.
In order to set up a data space, begin by setting up an organizational structure that is compatible with the requirements of your business or transaction. You can also use the search function to help users locate files using keywords, as well as other attributes. Version control is an additional useful feature that lets you keep track of changes made to documents in the dataroom. This can help you to avoid miscommunications when you give users an outdated version of the document.
Upload your files once you are satisfied with the structure of the folder. Then, start the due diligence process. You can change the permissions for each person and the viewing history from the settings in the data room. This will help to speed up the process and increase the chances of closing an agreement.
