If your company is considering taking a private placement (PP), you will have to share important documents that are confidential to potential investors/partners. Rather than relying on email and spreadsheets to share information, the virtual data room is a good alternative that provides an organized and secure environment to share information with several parties.

Preparation for PPM: You can create an online document library with permissions tailored to each prospective investor/partner and track the metrics of www.gamedataroom.com/using-virtual-data-rooms-for-private-placement/ usage to assess interest. Dynamic watermarks as well as print and view only permissions, as well as access expiration helps prevent any unauthorized access to sensitive documents. Physical Security Your VDR should have industry-grade facilities with multiple backups and offsite storage. There should also be fire protection, redundancy and biometric access. They should also employ the most stringent access controls such as forensic auditing and multi-factor authentication.

Investment in your own business You can include confidential revenue forecasts and IP ownership documents to provide potential investors an accurate picture of the growth potential of your business. You can also attach an updated cap table to illustrate how equity is distributed between investors and founders. This will speed up the due diligence process and allow you to get to the point of considering terms sheets faster.

A virtual dataroom can also facilitate collaboration between internal teams as well as external partners, by allowing users to submit specific questions about documents in a dedicated section. These questions can be addressed by the person in charge in the shortest time possible which means no time spent searching for information in emails or sending files that could be misplaced.