If you are contemplating a private placing (PP) and are considering a private placement (PP), it is important to communicate confidential documents with potential investors or partners. A virtual data room offers an improved security and streamlined alternative to spreadsheets and email to share information with various parties.
PPM Preparation: You can create a library of documents with customized permissions for each prospective investor or partner and track the usage metrics to gauge the level of interest. Access expiration, dynamic watermarks view and print permissions and view-only permissions help protect against unauthorized use of sensitive documents. Physical Security Physical Security: Your VDR provider should have industry-standard data centers that have multiple backups, offsite storage redundancy, fire protection, and biometric access. They should also employ the most stringent access controls including forensic auditing, forensic auditing, and multi-factor authentication.
Investment in your own business You can include confidential revenue forecasts more and IP ownership documents to give potential investors an accurate view of the future growth prospects of your business. You can also upload an accounting table that shows the division of equity between the founders and investors who are already in place. This can speed up the due diligence process and help you in the process of preparing an upcoming term sheet quicker.
A virtual dataroom can also facilitate collaboration between internal teams and external partners by allowing users to submit specific questions regarding documents in a dedicated section. The questions will then be answered by the person in charge in the shortest time possible without the need to search for information in emails or sending files that may be misplaced.