Virtual Data Rooms for Private Placement

If your business is thinking of the possibility of a private placement (PP) in the near future, you’ll have to share important documents that are confidential to potential investors or partners. Instead of relying on emails or spreadsheets, the virtual data room is an attractive alternative that offers an organized and secure place to share information with various parties.

Preparation for PPM: You can create an online document library with permissions tailored to every prospective investor/partner, and track the usage of your library to gauge interest. Dynamic watermarks, view only and print permissions, as well access expiration can prevent the unauthorized use of sensitive documents. Physical Security: Your VDR provider should have industry-standard data centers that have multiple backups and offsite storage redundancy, fire protection, and biometric access. They should also employ strict access controls such as forensic auditing and multi-factor authentication.

Investing in Your Own Company: You can upload confidential revenue projections and IP ownership documents to provide potential investors with an accurate view of your growth potential. You can also upload a current cap table in order to show how equity is distributed among the founders and existing investors. This will speed up the due diligence process and allow you to move towards terms sheets faster.

A virtual data space also allows for a more efficient collaboration between internal teams and external partners. It allows users to submit questions regarding specific documents in a designated Q&A section. The responsible person can answer them as soon as possible. This reduces the time spent trying to find information in emails or sending files that could be lost.

https://gamedataroom.com/why-your-company-needs-a-secured-data-storage-platform/