You’d like to carry on the investment process after a VC or investor expressed interest in your business. This is the point at which a virtual data space is required to share more comprehensive documentation on your business model, strategy along with financials and traction. This massive collection of documents requires to be categorized and tracked, as well as easily accessible. This capability can be offered by a private equity platform. It is essential to find a company that provides security, tracking and granular control of permissions to ensure that the right information is delivered to the right stakeholders.
Investors are likely to also require your articles of incorporation along with shareholder agreements and a consolidated balance sheet. This information being accessible in a virtual data room will speed up the due diligence process and help speed up the decision and a better term sheet presentation. If your investors are in the same industry, or are part of a comparable network, then having this information available at their fingertips will help them build trust with your company and team.
Make sure to include only documents that are current and relevant in your investor data rooms. Don’t include outdated or irrelevant information, which can slow down an review of the investor and create confusion. It is recommended to have short messaging or commenting features built into the virtual data room, so that the investor doesn’t need to leave the platform to ask a query or take an entry about something.
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