A financial data room is the central storage of documents and data that is used in due diligence during an M&A deal. It allows potential buyers to access sensitive information without having to download or forward it to third parties, which could result in legal problems. With granular access rights that can be set at the role, document and folder level, it’s easy to ensure that data is secured and secure throughout the due diligence process.
Investors have access to a range of documents, including business plans and investor decks along with statutory financial statements customer information, contract details and information about the product. These documents can help investors gain an understanding of a company’s financial performance and future prospects as well as potential for growth.
Other items that investors will likely to look over include employee handbooks, employment contracts, EMI options schemes and the cap table (which displays the percentage of the business each investor owns). These documents, which are easily accessible through a virtual dataroom will attract investors and speed up the due diligence process.
It is important for startups to choose the best investor data rooms if they intend to increase their fundraising. Investing in a solution that is user-friendly and features such as quick messaging, commenting and highlights can give you an edge over competitors in showcasing to prospective investors. A vdr that provides detailed audit trails and activity dashboards is an excellent option for investors because it helps to track the progress of their due diligence projects.