A data room is a space online where multiple parties can access and share sensitive information in a secure environment. It is used for M&A due-diligence (a process whereby businesses evaluate the risks of buying another company), fundraising, legal proceedings and various other types of business transactions.
A VDR lets you upload documents and securely share them with people who have been granted permission by the administrator. This allows you centralize all your documents, making them easier to review. Users can also benefit from tools like search, metadata and in-document navigation for effective retrieval and viewing of files. Additionally, users can track activity to see how often they interact with the documents in a data room, and gain visibility into who is viewed what data.
An investor data room can be a valuable tool that can be leveraged during the funding process. You can upload confidential financial information, such as revenue projections, IP documentation, and detailed financial records for investors to analyze in depth. This facilitates the process of obtaining funding and increases confidence of investors in your company.
While many businesses use email to share and store documents, it can be messy and inefficient. 46% of employees say that it’s often or at times difficult to locate the information they need within the email threads of their company, and 83% of those have re-created documents because they couldn’t locate an original version. A data room can be an answer to this chaos in document sharing and storage.