A virtual dataroom can be a valuable instrument for companies looking to accelerate the due diligence process when it comes to raising funds or completing M&A. But there are a number of business considerations that need to be taken into consideration when creating one.

The most important thing is to structure your data in a way that is consistent with the story of your business. The narrative will vary by stage. Companies in the seed stage may concentrate on the market’s trends, regulatory changes and team strength; while growth-stage companies might focus cloud-based document sharing system on metrics and relationships with key customers and accounts.

Another issue is ensuring that the information you share is up to current. The presence of outdated documents is a red flag to investors and could cause confusion during the due diligence process. It is essential to select a data room that is automated with updates, and allows administrators to monitor who is viewing documents and when.

While the data room must be secure enough to block unauthorised viewing or downloading as well as provide an enjoyable user experience. This is essential because advisers and investors need to be able to easily access the information and be confident that it is secure. A data room with an intuitive interface can make a huge difference to the speed and success of the transaction.

A data room must also include a section that outlines your brand’s identity and marketing strategy, and a quick pitch deck that you can use for meetings with prospective investors. Lastly, it’s important to include a section that includes references from customers and referrals. This is a good method to demonstrate the value your business provides to its customers, and to build trust with potential investors.