If your company is contemplating a private placement (PP), you will have to share important sensitive documents with potential investors or partners. A virtual data room is a a more secure and organized alternative to spreadsheets and email for sharing information with several parties.
PPM Preparation: You are able to build a document library that has customized permissions for each prospective investor and monitor usage metrics to gauge interest levels. Access expiration, dynamic watermarks, print only and view permissions and view-only access prevent unauthorized use of sensitive files. Physical Security Physical Security: Your VDR should have facilities that are of a professional standard with multiple backups as well as offsite storage. Also, there should be fire protection, redundancy and biometric access. They should also use strict access controls for forensic auditing as well as multi-factor authentication.
investing in your company You can provide confidential revenue forecasts as well as IP ownership documents to provide potential investors with an accurate view of the growth prospects of your business. You you can look here can also include a current cap table to show how equity is distributed between the founders and investors who are already in place. This will speed up due diligence and allow you to move faster towards a termsheet.
A virtual data room also facilitates more efficient collaboration between internal teams and external partners by enabling users to submit questions on specific documents in a dedicated Q&A section. They can then be answered by the person in charge as soon as possible and save time searching for information in emails or sending files that could potentially be lost.