A data room is a professional tool for document management, storage and sharing. There are many options available for cloud-based solutions, ranging from mainstream providers like Quoroom, iDeals or Docsend to niche ones geared towards specific industries and needs of business. A reputable provider provides templates as well as tools to sort and manage files, multi-user access, communication tools, permissions settings, and custom analytics. Selecting the right software for your needs will aid in reducing risks and time, reducing costs and increase internal transparency.
During major events like mergers and acquisitions as well as capital raising, there’s usually an enormous amount of data to analyze. The data could contain sensitive information that, if exposed, could cause damage to the company that is involved. A secure virtual or physical data room permits interested parties to review this information without divulging sensitive information, or putting the deal at risk.
When considering the best way to set up your investor data room It is important to remember that every business is unique and requires distinct documentation. However, there are standard documents that will be vital for the majority of businesses. These include your Confidential Information Memorandum, your cap table (a breakdown of who owns what percentage of the company) Board resolutions, milestones and important customer contracts. These documents will provide investors a complete picture of the company and help speed the process of fundraising.