When your company decides to fundraise to further your business, you must remember that to invest, investors first examine several documents about the company’s history, prospects, and financial and legal situation. Companies can use virtual data rooms to raise funds to make this process as safe and smooth as possible. These solutions give potential investors maximum discretion and transparency in the process while you still control access and security of your data. Learn about the features of VDRs for fundraising in this article.
The best virtual data rooms for fundraising
Right now, the VDR marketplace offers many options for conducting the fundraising process. But below, we’ve highlighted the VDR providers that can do the job better than the rest:
- iDeals – the best security features, deployment practically on all OSes, and flexible logo settings
- Intralinks – granular permissions allow you to control each user’s access to data at an individual level
- Firmex – high level of security, support for mobile apps
- DealRoom – robust login and sensitive data protection features against data breaches
- ShareVault- logo customization and multi-OS support, multi-level data protection
How exactly does VDR improves fundraising.
VDR offers the following benefits to streamline the fundraising process:
- Making a good impression on potential investors
It’s essential to investors that your document system is well put together and doesn’t take them too long to find. A virtual data room will allow you to improve and simplify the routine of organizing documents by automating uploading, converting, and indexing functions. Intelligent search will find the document you need in a fraction of a second. In this way, it will highlight all your strengths and expertise.
- This saves time for both parties
Both partners appreciate the opportunity to expedite the deal if possible. VDR offers the comfort of due diligence and cooperation. You don’t need to arrange face-to-face meetings to resolve any issues. The space provides you with encrypted chats and a Q&A sector. Also, the file viewer feature will speed up the due diligence process for investors because they can quickly view the document’s content without going into it. For space administrators, in turn, there are other benefits. They need to organize the entire space once and invite new users. Also, access to the room is not limited by time or location. You can use any device to log in.
- You get a clear view of what’s going on
VDR features such as real-time monitoring and audit trail provide data room administrators with the details they need regarding user activity. With this information, you can analyze the behavior of potential investors and decide which ones are more worthy of your attention.
- High-level security
During fundraising, a company gives access to its most sensitive data, so the risk of a data breach at times like these is higher than ever. This can be especially problematic for startups with nothing more than an idea. Virtual data rooms allow you to give your data the best possible protection. They do this by using data encryption and watermarks to protect against internal and external threats of data leakage, dual authentication to protect passwords, self-destructing documents to revoke access to manuscripts at any time, and granular permissions. The latter allows VDR owners to deny visibility, copying, forwarding, uploading, and printing documents, depending on their role.