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If your company is considering an investment in a private placement (PP) in the near future, you’ll need to share critical sensitive documents with potential investors/partners. Virtual data rooms provide an additional secure and organized alternative to email and spreadsheets for https://gamedataroom.com/why-do-we-need-a-virtual-data-room-for-mergers-and-acquisitions/ sharing information with several parties.
Preparation for PPM: You could create an online document library which has permissions specifically tailored for each prospective investor/partner and track the metrics of usage to assess the interest. Dynamic watermarks as well as print and view only permissions, as well access expiration helps prevent the misuse of sensitive documents. Physical Security: Your VDR should have industry-grade facilities with multiple backups and offsite storage. Additionally, there should be fire protection, redundancy and biometric access. They should also utilize granular access control, multi-factor authentication and forensic auditing.
Investment in your own business You can upload confidential revenue forecasts and IP ownership documents to present potential investors with an accurate view of the future growth prospects of your company. You can also upload an updated cap table to show how equity is distributed between the founders and investors who are already in place. This will speed up the due diligence process and let you move faster towards an agreement.
A virtual dataroom can also facilitate collaboration between internal teams and external partners by allowing users to post specific questions about documents in a dedicated section. The person responsible for answering them can respond questions as soon as they are able. This eliminates time wasted trying to find information in emails or sending files that could be lost.