As a startup, you need to know what to face and do to achieve successful funding. Fundraising is a multi-step process, and startups must prepare well. Due diligence is one of the most important fundraising processes, during which startups must provide potential investors with detailed, confidential information about their operations. Many startups choose a virtual data room to conduct this operation, but is it safe to store sensitive data?
What is a virtual data room for startups?
A virtual data room for startups, or VDR for investors, is a cloud-based platform to meet startups’ needs for sensitive document protection, flexible access, collaboration, and reporting. With VDR, conducting fundraising is smooth, fast, and efficient. So what are the key benefits data room can bring to startups?
- Trusted security – Security assurance gives startups confidence and an edge over competitors
- Accessibility – flexible remote access to the space allows your team to work together and stay connected. It also makes it easier for investors and helps them make faster decisions
- Transparent capital raising scheme -increases investor confidence and reassures them of the integrity of your operations
Virtual data rooms have been handling the confidential data of thousands of companies worldwide for years and therefore have long proven to be trustworthy.
Why is the VDR space safe for uploading sensitive data?
Startups fear for their sensitive data, which is perfectly normal. They have to make their intellectual property, financial, legal, and organizational sensitive documents available for viewing by completely unauthorized users. If there is a data breach, their startup will never make it to market; companies understand that. But how can a virtual data room provide complete protection for your documents? Below we highlight VDR security features that prove its space is one of the safest places to download important information:
- Certified solutions – VDR spaces have an international security license that allows them to handle sensitive documents
- Advanced encryption – allows data to be encrypted during storage and transmission to avoid data leakage
- Double Authentication -requires additional proof of identity when logging in
- Backup – runs 24/7 and will restore your data from the last saved version in case of failures
- Remote destruction – administrator can revoke access to a file on someone else’s device at any time
- Detailed permissions – allows you to regulate the access of invited users according to their licenses. You can deny copying, forwarding, uploading, editing, printing, and screenshot the document
- Digital Watermarks – A useful feature for intellectual property that protects your copyrights by stating the owner’s details directly in the document
Other VDR features
Other benefits of VDRs for investors include:
- A neatly organized repository
A thoughtful and tidy file structure is very important for convincing investors. The better you have organized your files; the easier and faster your due diligence will be. VDR can help you manage your repository efficiently with bulk uploads, automatic indexing, tags, smart search engines, and browsing tools. VDR also supports multiple file types, so you don’t waste time converting them.
- Better Transparency
Transparency doesn’t just come with security features that give you peace of mind about sharing sensitive information with investors. Also, the space offers you monitoring features and automatic activity reports. They allow you to stay aware of every activity of your invited users.
- Effective communication
The space allows you to respond quickly to all queries and questions. You can do this with encrypted group chats or a question-answer section.