The process of selling a business usually requires sharing sensitive documents and information with multiple buyers. Virtual data rooms are the perfect solution for those looking to sell their business or who needs to securely share sensitive information. A data room (also called a virtual dataroom to facilitate due diligence) provides the distribution and control necessary to complete your transaction.
Requests for investor data are made during the process of deal flow, however, they are usually made in two phases. Stage 1-data required to create a Term Sheet (e.g. market fit of the product and financial models and cap table).
Stage 2 detailed due diligence data request (e.g. security-related documents, material agreements and more).
When designing a dataroom, remember that investors would like to browse through data and documents efficiently and in a straightforward way. To achieve this, you should consider providing a comprehensive list necessary documents and a sensible arrangement to make it easier https://dataroomfashion.com/virtual-data-room-vs-physical-data-rooms/ for investors to locate what they're looking for. One way to accomplish this is to utilize folders, metadata and the same naming convention for documents.
Another suggestion is to avoid sharing fragmented and unconventional analyses in the dataroom. This could confuse investors and signal a lack in understanding of your business. Also, be careful to include only information that is needle-moving for your company and remove any documents that are no more relevant. This will help save time and ensure that all parties have access to the most accurate and current information.