It is important to have your due diligence documents in a virtual data room that you can use when preparing for an investment round or acquisition. These tools make data review easier by offering a secure repository of sensitive information, and by providing benefits special info like pre-defined templates specific to your needs.
Choosing the right provider is a crucial aspect of reducing the stress with these processes, therefore it’s worth researching different options and making sure they have the features you need before making any commitments. The best providers will offer an intuitive layout and a system for automating tasks so that your team can finish these projects with the most efficient tool.
Step 1: Determine which documents you will need to look over. This could include financial reports, legal agreements, contracts as well as product information and IP. Create folder structures that reflect these categories. Label the folders and files clearly to make it easier for users.
Include pitch decks with brief descriptions of the problem and how your business solves it. This will help you build a more convincing case for your company and help you save time when meeting with potential investors. Also, ensure you have all the documentation from previous funding rounds. This includes completed legal documents including term sheets, capitalization tables. These files should be updated immediately after changes are made, so that everyone involved has the most recent version.