If you’re in the beginning stages of raising money or looking to demonstrate the viability of your startup through due diligence to potential investors, setting up a data room is essential. Our experience shows that the companies that are successful in securing investment have an organized data room and an effective presentation deck.
The most crucial aspect of setting up a data room is structuring the folders and documents in a manner that makes it easy for buyers to comprehend what they’re looking at. This may include creating a table or index that lists the primary folders in your data room, like “Finance” or “Marketing”. Within these categories, you’ll need to create subfolders which further organize your documents by subject. This will make it easier for buyers to locate the information they require and accelerate the due diligence process.
Furthermore, you’ll be sure to have included a section that lists your company’s existing customers and references. This will assist potential investors understand your customer traction and will show that you’ve made headway in your setting up a data room market.
Once you’ve completed the structure of your data room, it’s now time to start inviting users. You can do this via the User Management section on the Manage your data room page. Secure virtual datarooms come with permission settings that are granular that allow you to invite users who need specific access permission to access documents. This is an enormous advantage over traditional data rooms, which require all attendees to be present at the same moment and can only accessed during office hour.
