Virtual Data Rooms for Private Placement
If you are a business planning to make a secured data storage platform private placement in the future, a virtual information room is a great way to quickly share information with investors. This includes the private documents needed to complete due diligence and seal a deal. It lets investors access important information without the need to travel and also reduces risk by identifying who has viewed what documents for how long.
During a due diligence process, a potential buyer will be required to look over the entire array of documents in the business that pertain to the financial health of the company including audited financial reports, tax returns, and balance sheets. To keep these documents in one place that is easy to navigate for potential investors, virtual data rooms could be used. In addition, the capability to set file-level permissions like printing, editing, or viewing as well as monitor activity with dynamic watermarks and notifications, help reduce the risk of data theft and ensure that sensitive information is kept secure.
After a deal has been closed, companies usually utilize virtual data rooms to share key investor updates on a quarterly or monthly basis. This may include detailed reporting on financial performance as well as KPI dashboards that show the progress towards targets and growth patterns. Companies can easily share this information with investors all over the world by establishing folder structures and limiting access to NDAs. In addition document archiving and auto expiration options enable the destruction of old documents before they can be access by unintentional users.
