Last updated on June 26th, 2023 at 11:46 am

INTRODUCTION

Fund raising is a very tedious job which requires you to make the right pitch and yet focus on following all the nitty-gritty details of the stipulated legal regulations. Virtual Data Rooms are used by most corporates to streamline their entire process of fundraising. This is because the VDRs provide many benefits like easy file management, a virtual paper trail and enhanced security. Its software eliminates the possibility of any tampering of financial data and allows the fundraising process to be completely authentic, without any discrepancies. VDRs allow you to securely share all your documents to investors real time in a secure, FINRA compliant online platform. The end-to-end encryption ensures that only authorized parties can access the documents and are allowed to view, edit or delete documents. VDRs thus allow investors complete transparency and saves their valuable time and resources.

How Virtual Data Rooms are beneficial to not only investors but fundraisers also

Helps a Fund Raiser Study Potential Investors

 A VDR provides you details about your potential investors, their past dealings as well as their previous record. Besides it also clears any ambiguities regarding them as it enables you to review financial records, growth records, information about intellectual property. This enhances your chances of striking a deal.

Secure Sharing of Information

VDRs provide advanced file management technology that allows you to provide or revoke access to your files to anyone at any time. Access to a VDR is controlled in a secure manner that the critical business data cannot be stolen, tampered or deleted by unauthorized persons. Besides end-to-end encryption allows only authorized persons to access the data. You can also set control parameters like view only, restrict download or printing, enable DRM to prevent screen capturing, apply watermarks.

Convenient Collaboration Possible

VDRs allow multiple users to collaborate together or individually at a given time. This allows you to gather multiple potential investors at a time.

Store and Organize Your Files in the Cloud

Since VDRs store data in the clouds, the data is sent to your potential investors without any loss or corruption. This does not overload your system with excessive access requests. Uploading files to your VDR is also easy as you can just drag and drop the files and folders in to your data room. And organize them later.

Track Who Views and Edits Your Documents

VDRs gives you the ability to track all the activities regarding your data, thus leaving you a virtual paper trail in case of an audit or personnel changes in the midst of your fund raising campaign.

Besides VDRs also give you an insight about which documents have been viewed multiple times by the interested party, this helps you emphasize those aspects in your next business meeting and strategize your next business move to gain an upper hand in the fund raising deal.

Helps Make a Good Impression on Prospective Investors

A VDR shows a prospective investor that you are serious about your business, you care about cyber security by keeping your intellectual property and financial data protected. It also showcases your adherence to ethical business processes, practices and transparency, while speeding up the due diligence process.

So in a fund raising campaign VDRs help you put your best foot forward.