www.gooddataroom.com/benefits-of-virtual-deal-rooms/
Historically in the past, a virtual data room (VDR) was a physical space that offered access to confidential documents for high-risk business transactions, such as M&As or IPOs. Virtual data rooms (VDRs) are an efficient and cost-effective way to manage sensitive information. You can benefit from the convenience and security that a VDR offers during significant business deals, regardless of the size of your business.
During the due diligence process, prospective investors should review various documents pertaining to your business. This could include financial records, as well as legal documents, contracts, and intellectual property. You’ll also need to provide the names of your customers and an analysis of your competitors. Additionally, you’ll need to prepare a section that showcases the expertise and experience of your team.
When you upload your files to the dataroom, make sure that they are well-organized and easy to navigate. Create a clear folder structure with main categories and subfolders and standard document names and descriptions. It’s also helpful to group documents with the same subject to simplify the process of reviewing. You can further organize your files by creating a master guide.
Do not include too many data in the data room since it can be overwhelming and distracting for potential investors. Make sure to share only data that is a needle-moving for the business. Also, don’t provide unconventional analyses which make the investor confused (i.e. sharing just a part of the Profit & Loss Statement rather than the entire report). Also, make sure you have short messaging or commenting built into the platform so that investors don’t have to leave the data room to communicate with you.