If your company is considering taking a private placement (PP) then you will have to share important, confidential documentation with potential investors or partners. A virtual data room is a a more secure and organized alternative to spreadsheets and emails for sharing information with several parties.

Preparation for PPM: You can create a document library online with permissions that are customized for each prospective investor/partner and track the metrics of usage to assess the level of interest. Dynamic watermarks as well as print and view only permissions, and access expiration help eliminate any unauthorized access to sensitive documents. Physical Security Your VDR should have facilities that are of a professional standard with multiple backups and offsite storage. Additionally, there should be fire protection, redundancy and biometric access. They should also use granular access controls, forensic auditing, and multi-factor authentication.

Investing in Your Own Company: You can upload confidential revenue projections as well as IP ownership documents to provide potential investors with an accurate view of your future growth prospects. You can also upload an accounting table that shows how This Site equity is divided between the founders and investors who are already in place. This will help speed up the due diligence process and help you move towards the term sheet more quickly.

A virtual data space also allows for a more efficient collaboration between internal teams as well as external partners, by allowing users to ask questions about specific documents within a separate Q&A section. The person in charge can respond to them as soon as possible. This cuts down on time wasted looking for information in emails or sending files which could be lost.