You’d like to carry on the investment process following the VC or investor expressed interest in your company. A virtual data room is needed at this point to present more detailed documentation about your business model, corporate strategies such as traction, financials, and traction. This huge amount of documentation must be tracked and organized, as well as easily accessible. A private equity platform can provide this functionality, but it is crucial to search for a service that offers security and tracking, as well as granular permission controls to ensure the right data is placed in the hands of the proper individuals.
Investors might also have to look over your articles, shareholder agreements and consolidated balance sheets. This information being available in a virtual room can streamline the due diligence process, resulting in faster decisions and a smoother term sheet presentation. If your investors are from the same industry or are part of a comparable network, then having this information to them will aid in building trust with your staff and company.
Make sure to include only documents that are relevant and up-to-date in your investor data rooms. Include irrelevant or outdated information to slow down the review of the investor and cause confusion. It is a good idea include short messaging or commenting features integrated into the virtual data room, so that the investor does not have to leave the site in order to ask a question, or to make notes about something.