Traditionally, businesses kept important documents in a secure room that buyers could access during due diligence. Today, these documents are digitally stored in the data room. Investors are able to access information such as your articles of association, your patents, your intellectual property and the legal structure of your business. This includes stock vesting, contracts and a cap-table (which determines who owns what).

It’s important to have the correct documentation ready in a timely manner when you’re preparing an investor, a sale or an acquisition. This can speed the process and lowers the chance of omitting some crucial information.

Virtual data rooms offer an environment that is secure for sharing and storing IP and licensing documents. Security features such as audit logs and user permissions settings, watermarking, as well as restrictions on printing and downloads can prevent leaks of information and data breaches.

Lawyers typically deal with large quantities of confidential information in a lawsuit. Virtual data rooms are a great option to manage this material because of their robust encryption methods and extensive security controls. VDRs allow lawyers to work with clients and share documents while keeping the privacy.

When you start pitching investors, a ‘data’ room for investors must be set up to ensure that investors have access to all the information they require to conduct due diligence. This will ensure that they know what you’re selling and make an informed decision on whether or not they’d like to partner with you.


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