An investor data room is a place to store for documents that companies use to conduct due diligence when seeking to raise funds or conduct M&A. It’s a great tool to streamline and manage these processes by making it simple to share information and keep track of the progress of due diligence.
When creating your investor data room, it’s important to be thorough and include everything an LP would like to know to ensure they are getting the most accurate representation of your fund, and that you’ve followed the correct procedures. LPs might be interested in the names and backgrounds of the team members, a summary of fund performance over time and a current fund agreement as well as other relevant materials.
It’s recommended to present a financial history of your company’s beginnings, as well as forward-facing projections. The majority of LPs will analyze these in detail and want to ensure that your model has been designed correctly, is robust to market volatility, and that you are making an accurate estimate of the value of your business. Sturppy is a program that is used by over 4,000 entrepreneurs to build financial models that are investor-ready.
Also, it is important to remember that the virtual data room gives you the ability to configure access to documents based on the type of information you want to share with who. It is then possible to ensure that only those you need to know have access sensitive information. You can control who views your document by using tools like watermarking, expiring links, and specific permissions.
http://vdrtechnology.info/is-it-safe-to-upload-sensitive-information-into-investor-data-room/