Data rooms historically was an actual space that provided access to private documentation for high-risk business transactions such as M&A or IPOs. Virtual data rooms (VDRs) are an affordable and efficient way to handle sensitive information. Whatever the size of your company you can benefit from the security and comfort a VDR can provide during critical business transactions.

During the due diligence process, prospective investors will need to look over many different documents related to your business. This could include financial records and contracts, legal documents and intellectual property. You’ll have to include a list of your clients and an analysis of competitive factors. You should also include a section that highlights the experience and expertise of your team.

As you upload your documents to the data room, make sure they’re well-organized and easy to navigate. Create a clear structure for your folders with subfolders and main categories that are standardized with document names and descriptions. It’s also helpful to more info here group together documents on the same subject in order to speed up the review process. You can further organize your documents by creating a master index for guidance.

Don’t share too much information because it could be overwhelming and distract potential investors. Only share information that is crucial to the company. Don’t offer unorthodox analyses that confuse the investor (i.e. sharing only part of a Profit & Loss statement, as opposed to the whole picture). Be sure that the platform has a way for investors to contact you a short message or leave comments.