You want to continue your investment process after a VC or investor expressed interest in your company. A virtual data room will be needed at this point to share more detailed documentation about your business model, corporate strategies, traction, and financials. This massive collection of documents needs to be tracked and organized and easily accessible. Private equity platforms can provide this capability, and it is important to look for a service that offers security and tracking as well as granular permission controls to ensure that the appropriate information ends up in the hands of the proper users.
Investors will also likely need to see your articles of incorporation, shareholder agreements and an consolidated balance sheet. The availability of this information in a virtual space can simplify due diligence process, resulting in a faster decision and term sheet presentation. If your investors are from the same industry or are part of a comparable network, having this information at their fingertips will help them build trust with your company and team.
Make sure to include only documents that are relevant and up-to-date in your investor data rooms. Don’t include outdated or irrelevant information to slow down the review of the investor and cause confusion. It is a good idea to include short messaging or comments features built into the virtual data room, to ensure that the investor doesn’t have to leave the platform to ask a query or take notes about something.
