Virtual Data Rooms for Private Placement

If you are contemplating a private placement (PP), it is essential to provide confidential documents to potential investors or partners. A virtual data room is a an easier, more secure and well-organized alternative to spreadsheets and emails to share information with many parties.

PPM Preparation: You are able to create a document library with specific permissions for each prospective partner/investor and track the usage metrics to gauge the level of interest. Dynamic watermarks as well as print and view only permissions, and access expiration helps prevent any unauthorized access to sensitive documents. Physical Security The physical security of your VDR should have facilities that are of a professional standard with multiple backups and offsite storage. There should also be fire protection, redundancy and biometric access. They should also implement granular access control, forensic auditing and multi-factor authenticating.

Inscribing capital into your own Company: You can upload confidential revenue projections and IP ownership documents to give potential investors an accurate view of your future growth prospects. You can also upload a cap table showing how equity is divided between founders and existing investors. This will speed up the due diligence process and enable you to move faster towards an agreement.

A virtual data space also facilitates better collaboration between internal teams as well as external partners by enabling users to ask questions about specific documents in a dedicated Q&A section. These questions can be addressed by the person responsible as soon as possible and save time searching for information in emails or sending files that could potentially be misplaced.

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