You want to carry on the investment process after a VC or investor expressed interest in your company. This is the point at which a virtual data room is required to share more detailed documentation about your business model, company strategy along with financials and traction. The vast amount of documentation should be tracked and organized, and easily accessible. This service can be provided by an equity platform that is private. It is crucial to choose a platform that offers security, tracking and granular permission control to ensure that only the correct information is delivered to the right stakeholders.

Investors may also need to review your articles of incorporation along with shareholder agreements and a consolidated balance sheet. The availability of this information in a virtual data room can streamline the due diligence process and help speed up the decision and presentation of the term sheet. In addition, if you have investors who are in the same field or network having this information at their fingertips can help them build confidence in your team as well as your company.

You should only include pertinent and up-to-date information in your investor data room. Inclusion of outdated or irrelevant information could delay the review of investors, leading to frustration and confusion. It’s a good idea to include a short messaging or commenting feature in the virtual data room, so that investors don’t have to quit the platform to ask questions or decide whether they want to not.

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