You’ve had a wonderful meeting with an VC however, they would like to see more detailed information about your business model and financials. Instead of sending them the link to a spreadsheet, you could set up a secure data room and invite the person to look it over.

A data room is an online repository of documents which allows users to browse documents at the same time from multiple locations without needing to make copies or reveal sensitive information. This is crucial during due diligence because it reduces risk for both parties. It also allows for sharing information with outside stakeholders who might not have the same access as internal employees.

In order to set up a data space begin by establishing an organizational structure that is compatible with the requirements of your business or transaction. You can also utilize the search function to help users locate files by keywords or other attributes. Another feature that is useful is version control that lets you monitor changes made to specific documents within the data room. This will help you avoid any miscommunications that could occur when you give users an outdated version of the document.

Upload your documents after you are satisfied with the structure of your folder. Then, start the due diligence process. You can modify the permissions for each person and the history of viewing through the data room settings. This information will help you to speed up the process and increase the chances of closing the deal.