You’ve had a great meeting with an VC However, they’d like to know more specific information about your business’s structure and financials. Instead of delivering them an email with a link to your spreadsheet, you can set up a secure virtual data room and invite the person to look it over.

A data room is an online document repository that allows users to view documents from multiple locations without having to create copies or disclose sensitive information. This is vital during due diligence, as it reduces risk for both parties. It also makes it easier to share information with outside stakeholders who may not have the same access to information as internal employees.

To launch a data room, begin by setting up the structure of your folders to match the needs of your business or transaction. You can also use the search function to help users find files based on keywords or other attributes. Another useful feature is the control of version, which allows you to keep track of changes made to specific documents within the data room. This can help you avoid any miscommunications that might occur in the event that you send users an outdated version of the document.

Once you’re satisfied with your folder structure, upload your documents and begin the due diligence process. Be sure to provide the appropriate access level to each person by changing permissions and viewing history within the settings menu for your data room. Making sure that the data is stored in a secure location can speed http://dataroomreview.org/preparing-for-a-potential-ipo-best-recommendations/ up the process and increase the chances of closing the deal.