Virtual data rooms are vital for any business, regardless of whether you’re looking to raise funds or making sure that your business has all the necessary information to be successful. It helps you organize and store your files in a secure environment, but also streamlines the due diligence and valuation process.

Investors and acquirers will need to access as much information as they can during due diligence to determine if a startup is worthwhile. If the company isn’t able to provide this information, the process can take longer and potentially derail the deal. This is why it’s essential to establish an investor data room before you begin looking for investment opportunities.

However, the contents of your investor data space can vary depending on the size of your company and the complexity of your business. One approach is to create main folders that are associated with particular types of information like project stages or departments. Within these folders, you can then create subfolders to further divide your files into easy-to-follow structures.

The privacy level moved here of every file is also vital. Consider setting up granular permissions to guard sensitive information. Some providers offer group rights settings that allow you to grant access to entire departments or groups of professionals like accountants or investment bankers. This can greatly simplify the process of granting access to the most appropriate people and help to make the process more efficient. This is especially crucial in the case of a startup that is going through multiple rounds due diligence or is in the process of preparing for an eventual sale.