If you’re ready to sell your company, you’ll need provide a plethora of documents and files with potential buyers. A data room, also known as a due diligence virtual dataroom, lets you consolidate all your information and securely share it with potential buyers as part of the due diligence process.

Venture capital firms will typically examine the corporate documents of a startup (including contracts, options and stock paperwork) before investing. These exchanges are usually completed through a data room where legal teams can look over and access the documents.

A VC data room gives investors an exact list of the company’s assets, including trademarks, patents, as well as ongoing R&D investments. It helps prospective investors know the financial health of a company, through providing financial documents like profits and losses statements as well as previous audits.

It is vital to choose an online data room that has a secure, reliable infrastructure in the event of M&A. Data room providers should have an excellent level of security including the encryption of data and the tracking of activity to ensure that information isn’t printed or altered. It should also offer an extensive access control system for uploaded documents and allows users to choose which folders and files they can view or download. For instance, iDeals offers eight different permission levels for uploaded files, which you can customize according to specific roles and projects.

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