A data room is a professional solution for document management, storage and sharing. There are many options for such cloud solutions which range from standard providers like Quoroom, iDeals or Docsend to niche options that are tailored to specific industries and business requirements. A good provider offers templates that can be used to sort and manage files as well as multi-user access, communication tools, permission settings and custom analytics. The right software can help you to minimize risks and costs, as well as save time and money and improve the internal transparency.
In the course of major events, like mergers and acquisitions, tenders or capital raising, there's usually a significant amount of data to be reviewed. These data may contain sensitive data that if leaked could cause damage to an organization. A secure virtual or physical data room enables interested parties to access the data without divulging any confidential information or potentially putting the deal at risk.
When deciding on the best method to set up your investor data room it is crucial to keep in mind that every company is unique and will require different documents. But, there are commonly used documents that are vital for the majority of businesses. Included in this list are your Confidential information Memorandum (a description of who is the owner of the company and what percentage), your cap table milestones, important customer contracts. These documents will give investors a complete picture of the company's operations and speed the process of fundraising.