If your company is in the stage of growth or at the seed it’s crucial to have clear and organised documents readily available to investors. Using data room software helps make this possible and offers advantages like pre-defined templates that can be tailored according to your needs. This allows you to easily access and share all the information you need, resulting in an efficient process.
Typically, virtual data rooms are typically used to conduct due diligence during financial or legal deals between two or more parties. However, technological advancements and the growing trend of remote working means that they are being utilized to support complete deal lifecycles and even business restructuring and fundraising. They streamline processes, guarantee security and facilitate collaboration and efficient communication – all of which are vital to the M&A industry.
It’s important to understand what data should be stored in your virtual dataroom and how you can store it. It will depend on the bigger story you’re trying to convey and it’s a good idea to spend time determining what information is needed to present an investor with the most complete picture.
For instance, in an early-stage company it may be beneficial to include the Confidential Information Memorandum (CIM) including details of the Board structure and organisational chart. Also, important contracts and relationships as well as milestones and metrics – whatever is relevant to the story you’re trying to convey. This will allow you to answer any questions the investor may be asking and demonstrate the accuracy of your information.