Using a Data Room to Store Intellectual Property and Other Important Documents
Traditionally, companies stored important documents in a safe area that buyers could access for due diligence. These documents are now stored digitally in data rooms. Investors can view information such as your articles of association and your patents, your intellectual property, and the legal structure of your business. This includes stock vesting, contracts and a cap-table (which indicates who is who).
If you’re in the process of preparing for an exit, investor or acquisition, it’s vital to have the right paperwork completed in a timely manner. This helps speed the process and lowers the chance of missing an important item.
Virtual data rooms provide an environment that is secure for sharing and storing documents related to IP and licensing. Security features like audit logs and user permission settings, as well as printing/download restrictions and watermarking prevent data leaks and data breaches.
Lawyers often deal with large volumes of confidential material during a litigation case. Virtual data rooms are a great solution to manage this material due to their secure encryption methods, and granular security controls. VDRs allow lawyers to work with clients and share files while preserving the confidentiality.
As soon as you begin selling investors, a database room for investors must be set up so that investors have access to all the data they need to conduct due diligence. This will help them comprehend what you are offering and help them make an an informed decision about whether they’d like to partner with you.