If you’re ready to sell your company, you’ll need share a wealth of documents and files with potential buyers. A data room, also ideals known as a due diligence virtual dataroom, allows you to consolidate all your information and securely share it with potential buyers as part of the due diligence process.

Venture capital firms will typically review corporate documents of a start-up (including contracts and stock and option documents) prior to investing. These exchanges typically take place through a data room where legal teams have access to and can look over the information.

A VC dataroom is a place where investors can find a record of a company’s assets, such as trademarks, patents, and R&D investment. It also helps prospective investors to understand the financial health of a company by providing financial documents such as profits and losses statements as well as audits from the past and cash flow projections.

It is vital to choose a data room with a reliable, secure system in the event of M&A. Data room providers must have a high-level of security, such as the encryption of data and the tracking of activity to prevent information being printed or altered. It should also provide the most comprehensive access control for uploaded documents, allowing users to select which folders and files they can view or download. For example, iDeals offers eight different permission levels for uploaded documents, which you can customize according to specific roles and projects.