You’ve just had a great meeting with an investor and now they want to conduct more due diligence. You’ve probably been told that this is a standard procedure and that a well designed data room can make fundraising easier.
You’ll need to provide a secure location online where people can access confidential documents. The documents can be accessed anywhere and downloaded, including mobile devices. The goal is for potential investors to be able access due diligence documents in a safe way, and in a transparent and efficient manner. You can also track the activities in your VDR. For instance you can track who is viewing files and for the length of time.
The key is to arrange your data room to accommodate various requirements and needs. You’ll want to provide only the essential information required for stage 1 due-diligence (e.g. the market fit of the product and financial model). However, you’ll want to provide more granular information for stage 2 due diligence. This includes company documents, securities-related docs materials agreements, as well as staff bios.
You’ll need a decision on who has access to your data room, including regular users, administrators and guests. It is also important to determine whether you need a version control, which permits you to keep track of the changes made to a document and ensure that your team members are using the most recent version of any file. You’ll also need to select the vendor that provides an online dataroom solution that will meet your business’s needs. For instance, if you need to see who is https://andvdr.com/what-are-the-types-of-due-diligence/ looking at what files and for the length of time, you should choose an auditing service provider. capabilities.
