If you’re looking to raise funds or simply making sure that your business is equipped with the information necessary to succeed having a virtual data space is essential. It will not only help you organize and store your documents in a secure space and streamlines the due diligence and valuation process.
Buyers and investors will want to access as many details as they can during due diligence to determine whether an idea is worth investing in. The process can be delayed or even halted if the startup is not capable of providing the required information. This is why it’s essential to set up an investor data space before you look for investments.
The exact contents of your investor data room will vary according to the size of your company and the complexity. One technique is to create main folders which correspond with particular types of information like project stages or departments. You can create subfolders within these folders to further organize your documents.
Another thing to consider is the privacy level of each file. To protect sensitive information, consider setting the permissions in granular ways. Certain providers offer group rights settings that let you allow access to entire departments or types of professionals, such as accountants or investment bankers. This can help to grant access to the appropriate individuals and speed up the process. This is particularly important in situations where a startup is going through multiple rounds due diligence or is preparing for an offer.