When it is about due diligence for investment investors require access to an online data room (VDR) that they can access to review documentation from the company as well as intellectual property. It is therefore crucial that startups make sure their VDR is up-to-date and that any changes are immediately delivered to all contributors.
This lets all participants have access to the most current version of the file, and to complete their due diligence in a timely manner. This also helps prevent confusion or miscommunication. Additionally, any sensitive documents are blocked from view by default. This includes contracts with customers as well as pricing. The administrator can also monitor the activities of users in the VDR to track who is viewing what documents and for how long. This can be a good indicator whether a document was shared in a proper manner.
In the past, companies kept their most important documents in an extremely secure room that was only accessible to authorised people. This was called a ‘document vault’ and was a valuable asset to businesses. The advent of the digital world has made it possible to store documents in an easier and more efficient manner, which has increased the value of these files for businesses.
The VDR allows investor communications and fundraising to be done centrally, which makes it easier for raising capital. Digify, the leading virtual data room provider in the UK is ISO27001 certified, with numerous features that are designed to help at every stage of the investment process.