You are a few rounds from securing a potential investor or have already secured one, and they’re now performing due diligence. They have asked for more details about your product market fit and financial model and traction data. This is typically an inquiry in stage 2 and requires you to provide more information than your pitch deck.
In these situations a virtual dataroom can be an essential tool. It helps to make the process smoother and allows for easier disclosure by allowing access to your company’s information in a systematic manner. It’s also equipped with security features in order to protect sensitive information from leaked. These include encryption, advanced permissions, and watermarking. The data can Check Out also be traced by tracking the time and date when someone edited the data.
If you are planning an investment or sale, the VDR can be beneficial as it can reduce the amount of time and money required for data collection and documentation. It can speed up the due diligence process by allowing prospective buyers to access essential business data immediately. You can even use cloud-based solutions that make it easy to create templates and organize documents for easier discovery as well as enabling real-time collaboration. You can also monitor the use of the VDR by using features such as dashboards, custom reporting and bespoke analytics to increase transparency.