Using a Data Room to Store Intellectual Property and Other Important Documents

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Traditionally, companies kept important documents in a secure area that buyers could access to conduct due diligence. Nowadays these documents are stored in the data room. Investors are able to access information like your articles of association and your patents, your intellectual property, and the legal structure for your company. This includes contracts, stock vesting and a cap-table (which determines who is who).

If you’re in the process of preparing for an investor, exit or acquisition, it’s crucial to have the appropriate documentation completed in a timely manner. This will make the process easier, and reduce the risk of omitting any important information.

Virtual data rooms offer the security of sharing and storing information related to IP and licensing. Security features such as audit logs, user permission settings, watermarking, and limitations on downloading or printing aid in preventing leaks of information and data breaches.

Lawyers are often confronted with large volumes of confidential documents in the course of a case. Virtual data rooms are the ideal method to manage this information due to their robust encryption methods and their precise security controls. VDRs also enable lawyers to collaborate on documents with clients while keeping confidential information.

As soon as you begin pitching investors, a data room for investors needs to be set up to ensure that investors have access to all the data they need during due diligence. This will ensure that they know what you’re offering and make an informed decision on whether or not they want to partner with you.