It is essential to have organized and clear documents for investors, no matter if your business is in the beginning stages or is growing. Data room software can to make this possible and provides benefits like defined templates specified to your requirements. This allows you to easily access and share all the information you require, which results in an efficient process.

Virtual data rooms are usually used to conduct due diligence during legal or financial transactions between two or more parties. However, technological advancements and the trend for remote working has meant that they are increasingly being used to support full deal lifecycles and even restructuring and fundraising. They simplify processes, ensure security and allow collaboration and efficient communication – all of which are vital to the M&A industry.

It’s important to know what information is required in your virtual data room and the most efficient way to keep it. This will depend on the story you intend to tell. It’s worth planning the details that will give investors the most complete picture.

For instance, if you are an early-stage company it could be appropriate to include the Confidential Information Memorandum (CIM), details of the Board structure and organisational chart, key contracts and relationships such as milestones and metrics, whatever is relevant to the narrative you’re trying tell. This will allow you to respond quickly to any inquiries that the investor might have and demonstrate the clarity of your information.

digital storage as a safeguard for financial records