Traditionally, companies stored important documents in a secure space that buyers could access with due diligence. These documents are now stored digitally in data rooms. Investors are able to access information such as your articles of association along with your patents, intellectual property, and the legal structure of your business. This includes contracts, stock vesting and the cap-table (which lists who is who).
If you’re planning for an investor, an exit or acquisition, it’s important to have the right paperwork prepared in a timely manner. This will speed up the process, and reduce the risk of omitting any important information.
Virtual data rooms provide an environment that is secure for sharing and storing files related to IP and licensing. Security features such as audit logs, user permission settings as well as watermarking and restrictions on printing/downloads prevent data breaches and leaks.
Lawyers often deal with large quantities of confidential information in a lawsuit. Virtual data rooms are perfect for managing this material because of their robust encryption techniques and sophisticated security controls. VDRs also permit lawyers to share and collaborate on documents with clients while maintaining the confidentiality of sensitive information.
As soon as you begin selling investors, a database room for investors must be set up so that they have access to all the information necessary during due diligence. This will allow them to understand what you are offering and help them make an the right decision as to whether they’d like to partner up with you.