You’d like to continue the investment process following the VC or investor expressed interest in your company. A virtual data room is required at this point to present more specific information about your business model, company’s strategies as well as financials, traction, and other information. This massive collection of documents requires to be tracked and organized as well as easily accessible. A private equity platform could provide this functionality, but it is essential to search for a platform that offers security, tracking, and granular access controls to ensure that the correct information is in the hands of the appropriate people.

Investors will also likely require your articles of incorporation as well as shareholder agreements, and a consolidated balance sheet. The information available in a virtual area will streamline due diligence process, which will result in an easier decision and a quicker term sheet presentation. Additionally, if your investors are in the same industry or network having this information on their fingertips will help build confidence in your team as well as your company.

You should only include pertinent and up-to-date information in your investor data room. Include irrelevant or outdated information that slows down the review process for investors and create confusion. It is recommended http://vdrwebsolution.com/the-pros-and-cons-of-vertical-consolidation-for-business/ to include short messaging or commenting features integrated into the virtual data room, to ensure that the investor doesn’t need to leave the platform in order to ask a question, or to make notes of something.