After your startup is successful and you are ready to further develop your business, you still need investor support. You need to prove to venture capitalists that you are ready to go further and to do this, you will have to show your intellectual property through due diligence. During this process, it is very important to keep your secret data completely safe, otherwise, their leak could mean the collapse of all your plans. To avoid this plot, the services of a virtual data room will help you, and in this article, we will tell you exactly how it will help you complete the due diligence process.
Organize and securely share confidential documents
Although the nature of a startup lies in external benefit and not internal systematization, the new stage requires new actions and during due diligence, startup owners have to slow down a little and put things in order in all their documents as quickly as possible.
Use VDR with a straightforward interface to upload your documents there and format them according to strict standards for indexing files. Good data rooms enable you to reorder files for easier browsing, which can save you a lot of time and investor time.
Compliance and Safety Assurances
Developers of quality virtual data rooms pay great attention to ensuring that their product meets the highest security standards. These VDRs typically use quality security certifications, 256-bit encryption features, backups, and multiple data centers.
At the same time, the data processing centers themselves have several key cards and are under constant control of physical security.
Powerful Access Control
As mentioned above, the security of the digital data room is its main feature, for which it is loved and trusted. Many VDRs use additional security measures in the form of access control. This way you will be able to:
- Revoke access to documents in case of any problems
- Remove old users and add new ones
- Set an expiration of a user in a specific room after which he is automatically removed from the online space
- Assign roles to users, after which they will have a certain level of access to documents, for example, owner/participant / viewer
Advanced Features
All of the above functions are the basic set of any good VDR, however, many suppliers have long since begun to implement additional functions in their products to remain competitive and popular among successful companies.
Thus, not only the guarantee of safety is increased, but also the efficiency of the execution of all work processes. For example, when you give investors access to your confidential documents, you can play it safe and disable the function of printing, copying, or forwarding the document.
Other advanced features include:
- Mass loading and import of documents
- Ability to customize watermarks to avoid data leaks
- Integration with cloud storage
- Built-in nondisclosure agreement
Also, professional data rooms allow many users to be on their platform at the same time while working without interruptions and slowdowns.
Summing up the results, it must also be said that the presence of a virtual data room is an indicator of a wise decision and forward-thinking thinking that will not be overlooked. Investors will appreciate your willingness to take responsibility and the modern way of solving the problem, so no matter how you look at it, purchasing a virtual data room is one big plus.