You’ve just had an amazing pitching with an investor, and now they’re looking to conduct more due diligence. You’ve probably been told that this is a common practice and that a properly prepared data room can make fundraising easier.

It is essential to provide them with a secure, online location to review confidential documents that are able to be accessed and downloaded from any device, including mobile devices. The aim is for potential investors to be able to access due diligence documents in a secure efficient and transparent manner. You can also monitor activity in your VDR. For example you can determine who is viewing files and for the length of time.

The key is to arrange your data room in a way that accommodates different requirements and needs. You’ll want to include only the minimum data for stage 1 due-diligence (e.g. the market fit of the product and financial model). However, you’ll need provide more granular information for stage 2 due diligence, such as company documents, securities-related docs material agreements and personnel bios.

You’ll need a decision on who has access to your data room, which includes administrators, regular users and guests. You’ll be required to decide if want version control. This allows you to keep track of modifications to any document and ensures that everyone in the team have access to the latest version. Additionally, you’ll have to select a vendor who offers an online data room service that can meet your specific business needs. Find a vendor with auditing capabilities, for instance in the event that your business requires to know who has access to what files and for how long they’re.