Using a Digital Data Room

Digital data rooms are an encrypted repository for sharing and storing files. It is accessible to different parties that have access to a specific part of the repository. This makes it more secure and beneficial than traditional physical or digital storage solutions.

Many founders share financial information through a virtual dataroom with potential investors. This includes historical and projected financial statements, along with the assumptions, sources, and the reasoning behind the projections. Some founders also include the resumes of the most important members of their team and documentation regarding the hiring policies of their company. Other common items found in a VDR are details on market size, growth trends and regulatory landscape.

Transparency and excellent document organization is critical for gaining the confidence of investors during a process of fundraising. A virtual data room can provide both of these features in that it allows investors to view documents in a clean, well-organized format. Additionally, a data room comes with additional security features that help protect sensitive data such as two-factor authentication and remote denial of access.

It is essential to assess the customer support offered by different virtual data rooms when comparing them. A good option is to offer 24/7 support, meaning that they can be reached regardless of what time zone a customer is in. This is especially helpful when a client has problems with the platform and requires assistance to resolve the issue quickly. A reputable company will provide a variety of tools that can help speed up collaboration. These include drag-and-drop, bulk uploading and the ability to control folders.