Virtual Data Rooms for Private Placement
If you are considering a private placement (PP) then it is crucial to communicate confidential documents with potential investors/partners. A virtual data room is a a more secure and organized alternative to spreadsheets and emails to share information with many parties.
PPM Preparation: You can create a library of documents with specific permissions for each prospective investor or partner and monitor the usage metrics to gauge the level of interest. Dynamic watermarks as well as print and view only permissions, as well access expiration help eliminate the unauthorized use of sensitive documents. Physical Security: Your VDR provider should have industry-standard data centers that have multiple backups, offsite storage, redundancy, fire protection and read more biometric access. They should also implement the most granular access control system, multi-factor authentication, and forensic auditing.
Investing in Your Own Company Upload confidential income projections and IP ownership documents to provide potential investors with an accurate view of your future growth prospects. You can also upload the current cap table to illustrate how equity is distributed among the founders and existing investors. This will speed up the due diligence process and enable you to move faster towards an agreement.
A virtual dataroom also facilitates collaboration between internal teams and external partners through the ability to post specific questions about documents in a separate section. These questions can be addressed by the person responsible in the shortest time possible, eliminating time wasted searching for information in emails or sending files that could be misplaced.
