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

Traditionally, companies kept important documents in a safe area that potential buyers could access during due diligence. Today these documents are stored in the data room. Investors can access documents like your articles of association and your patents, as well as your intellectual property and the legal structure of your business. This includes stock vesting, contracts and the cap-table (which determines who is who).

It’s crucial to have correct documentation prepared in a timely fashion when you’re preparing for an investor, a sale or an acquisition. This will make the process easier and decrease the chance of missing something crucial.

Virtual data rooms provide an encrypted environment for sharing and storing documents relating to IP and licensing. Security features such as audit logs, user permission settings, along with watermarking and printing/download restrictions prevent data breaches and information leakage.

Lawyers often have to deal with large volumes of confidential documents in the course of a case. Virtual data rooms are perfect to manage this information due to their strong encryption methods and extensive security controls. VDRs permit lawyers to collaborate with clients and share documents while preserving the confidentiality.

A data room for investors should be set up at the time you begin making pitches to investors so they can view all of the information you need to share during due diligence. This will help them comprehend what you are offering and help them make an the right decision about whether they want to partner with you.

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