Data rooms have a wide range of uses, but they’re particularly vital when it comes to start-ups, for a number of reasons. They’re a simple and secure online repository for storing sensitive data, and generating funding. But why else should start-ups be using data rooms? In today’s blog, we’ll be breaking down all the main reasons why, when it comes to due diligence and raising funding, there are far better options than Google Docs and emails.
Data rooms are more secure
When you’re sharing your pitch deck with multiple investors, there has always been the risk that those investors might share it outside of your circle. Before virtual data rooms, it was virtually impossible to ensure that wouldn’t be the case. Your pitch deck falling into the wrong hands, particularly the hands of your competitors, is quite naturally cause for concern.
With a virtual data room, you can control exactly which investors (and which employees) have access to certain documents. This permissions system will also let you know who has seen said documents, and even how long they spent on each page. This visibility will greatly limit the risk of data breaches.
Costs are lower
When you’re running a start-up in its early stages, every penny you spend needs to be going towards the ultimate growth of your business. The profits will, if all goes smoothly, come later- but in the meantime virtual data rooms are essential for start-up businesses because of just how affordable they are. In the current age of virtual businesses, it’s the best possible place to store confidential information.
A platform like Google Docs might be free to use on paper, but this option will end up being far more costly if you succumb to a data breach. For the optimal security alone, virtual data rooms are well worth the price.
Make decisions faster
Virtual data rooms speed up decision making for your business, your prospective investors, and everyone involved. This is vital when it comes to the fundraising process. The main aspect of data rooms that make everything so much faster is the visibility; everyone can see all the documents they need to see, at all times and in one central location. This will drastically reduce the time you would have otherwise spent emailing back and forth, or making calls.
Data rooms are available everywhere
Now that so many businesses are completely virtual, your investors will expect to have round the clock access to pertinent documentation. A startup needs to be agile, especially if your employees and investors are in different time zones. That’s another reason why virtual data rooms are so handy. They can be accessed from virtually anywhere with an internet connection. Files can be viewed and shared, securely and at any time.
Looking for an easy-to-use virtual data room? Book a demo today to find out why Engage by Perivan could be crucial for your business.