When you’re looking to sell your business or raise funds, it’s likely you have a large amount of information and files to provide potential investors. A virtual data room, also referred to as a due diligence data room is an online repository that allows you to securely store and share information and documents with the right people at the right time.

The benefits of a digital dataroom include:

Secure storage and sharing of sensitive data: Using a virtual data room allows you to securely store and share your data with a variety of stakeholders, while keeping control of who has access to what. This accelerates due diligence and reduces the possibility of sensitive information being exposed.

Collaboration is improved: A virtual data room allows team members to work on projects even though they are in different locations. It’s also easy to manage access and permissions for projects, to ensure that only the appropriate people see the right information.

Interface that is easy to use Users will be able to get started by choosing an application that has user reviews, a free plugin GUI, and is compatible with their software requirements. Ideally, you should also choose a platform that provides 24/7 assistance, so that should you experience any issues, you can get help promptly.

Choose the documents you’ll include in your data room: You’ll have to include financial and legal documents, including financial statements, contracts and intellectual property documents. It is important to include the cap table that my latest blog post shows how the amount each investor owns of your business.