Traditionally, companies stored important documents in a safe location that buyers could access for due diligence. Today, these documents are digitally stored in the data room. Investors can view information like your articles of association along with your patents, intellectual property and the legal structure of your company. This includes stock vesting, contracts and a cap-table (which lists who is who).
It’s essential to have the correct documentation ready in a timely fashion when you’re preparing for an investor, a sale, or an acquisition. This speeds the process and decreases the chance of missing something important.
Virtual data rooms offer secure environments for sharing and storage of IP and licensing documents. Security features such as audit logs, user permission settings, watermarking, and restrictions on printing/download aid in preventing leaks of information and data breaches.
Lawyers are often confronted with large volumes of confidential information in the course of a case. Virtual data rooms are the ideal solution to manage this material because of their strong encryption techniques and granular controls on security. VDRs also enable lawyers to share and collaborate on files with clients, while protecting the confidentiality of sensitive information.
An investor data room should be loaded immediately you begin pitching continue reading this to investors so they can view all the relevant information during due diligence. This will enable them to comprehend what you’re selling and make an the right decision as to whether they’d like to join with you.