You want to keep investing following the VC or investor expressed interest in your company. This is when the virtual data room is required to share more complete documentation of your business model, company strategy, traction and financials. This huge amount of documentation must be organized and tracked, as well as easily accessible. This service can be provided why is a data room important for investment deals by an equity platform that is private. It is crucial to choose a service that offers security, tracking and granular permission control to ensure that the right information is available to the appropriate stakeholders.
Investors will likely also require your articles of incorporation as well as shareholder agreements, and the consolidated balance sheet. Making this information accessible in a virtual data room can streamline the due diligence process and make it easier to make a quick decision and term sheet presentation. If your investors are from the same industry, or part of a similar network, then having this information available at their fingertips can help them build trust with your staff and company.
You should only include pertinent and up-to-date information in your investor data room. Inclusion of outdated or irrelevant information could delay the investor’s review, potentially creating confusion and frustration. It is recommended to include short messaging or commenting features built into the virtual data room to ensure that investors do not need to leave the platform to ask a question, or to make an entry about something.