When it comes to due diligence on investments investors require access to a virtual data room (VDR) which they can use to look over company documentation and intellectual property. It is therefore crucial that startups make sure their VDR is always up-to-date and that any updates are immediately made available to all contributors.
This allows everyone to view the most up-to-date version of the file, and to complete their due diligence in a timely manner. It also prevents any miscommunication or confusion. Additionally, sensitive documents are blocked from view by default. This includes contracts with customers and pricing. Administrators can also monitor user activity in the VDR to see who is viewing what documents and for how long. This can be a good indicator whether a document was shared in a correct manner.
In the past, companies stored their most important documents inside an area that was only accessible by authorised personnel. This was called a ‘document vault’ and it was a huge asset to businesses. The emergence of the digital world has made it possible to store files in an easier and more efficient manner, thereby increasing their value to businesses.
The VDR allows for investor communication and fundraising to be done centrally and accelerates the process of raising capital. Digify is the most renowned virtual data room provider in the UK, is ISO27001 certified, with many features that support each stage of the investment process.