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

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

Traditionally, companies stored important documents in a safe space that buyers could access with due diligence. Today, these documents are digitally stored in a data room. Investors can access documents such as your articles of association along with your patents, intellectual property as well as the legal structure of your business. This includes stock vesting, contracts and a cap-table (which shows who owns what).

If you’re in the process of preparing for an investor, an exit or acquisition, it’s essential to have the appropriate documentation prepared in a timely manner. This will speed up the process and decrease the chance of missing something crucial.

Virtual data rooms provide the security of sharing and keeping IP and licensing documents. Security features such as audit logs and user permissions settings, watermarking, and restrictions on printing/download aid in preventing leaks of information and data breaches.

Lawyers often have to deal with large volumes of confidential information during a trial. Virtual data rooms are ideal to manage this material due to their robust encryption techniques and sophisticated security controls. VDRs also allow lawyers to collaborate on files with clients, while maintaining the confidentiality of sensitive information.

A data room for investors should be set up immediately you begin pitching investors to ensure that they can access all of your relevant information during due diligence. This will help them understand what you’re offering and make an informed decision about whether or not they’d like to work with you.