A virtual dataroom is an essential tool for companies who want to accelerate the due diligence process when it comes to raising money or closing M&A. When creating one there are a variety of aspects to be considered.
The most important thing to consider is how to structure the data in a way that helps the company’s narrative. The narrative will vary by stage — seed-stage companies may concentrate on the market’s trends, regulatory changes and team strength. Growth-stage companies might focus on metrics and relationships with key accounts and customers.
Another consideration is to make sure that the information you provide is accurate. Documents that are out of date are a red flag to investors and could cause confusion during the due-diligence process. This is why it’s important to use a data room that automates updates and allows administrators to keep track of who sees what documents, and when.
While the data room must be secure enough to prevent unauthorised viewing or downloading, it should also provide an excellent user experience. Investors and advisers must be able to access the data easily and with confidence. A data room with a user-friendly interface can make an enormous difference in the speed and effectiveness of an investment.
A data room should also include a section that outlines your company’s brand and marketing strategy and a quick presentation deck you can use to talk with potential investors. It is also M&A deal important to include a section that includes references from customers and other referrals. This is a great method to demonstrate the value your company gives its customers and also to establish confidence with potential investors.