Last updated on June 26th, 2023 at 12:31 pm

INTRODUCTION

All business ideas have concrete details about their businesses that may be trade secrets or otherwise secret data that needs to be kept out of the general publics hand. But when you are pitching to a VC for investments in to your company then to attract his interest you have to disclose to him several sensitive details about your business. You have to be absolutely transparent with them and can’t hide any trade secrets from them, because without complete information they may not invest in your company. But for this you need to ensure that this information that is so vital for your businesses health and success is secure and accessible only to the right, authorized individuals.

Secure Information

This is where a secure Virtual Data Room enters the picture and becomes invaluable. VDRs offer a high degree of protection for everything confidential. Due to its elaborate and regulated user management rights. A VDR can thus help maintain the health and integrity of your pitch with the VC, as it allows you to share the same information with your VC, at the same time helps you protect your business secret.

Build and Enhance Investor Relationship by creating the right experience

Managed effectively, your VDR can also be helpful in building and enhancing relationships with investors by providing them with a more informative and engaging pitch. The right virtual data room can extend and further enhance investor engagement with the pitch and corresponding due diligence process.

Helps Organize Files and Information

When seeking VC funds you may require to disclose or send hundreds of different files for their scrutiny, which becomes a very confusing and tedious job when shared by e-mail. A VDR allows you organize it properly as all information is stored in a single, secure location that authorized persons can access anytime from anywhere. It ensures that all information is in place and permits easier additions or alterations to it.

Can Regulate Access to Documents

Bidders might access documentation at different times and with VDR you can regulate the information a person can access depending upon his role in the organization. Thus a VDR helps in compartmentalization of documents, whereby one can access all the documents that one needs to access or is authorized, but is barred from accessing other private documents that do not concern him.

Better Understand Key Financial Details

By compiling all the necessary information in one place a VDR helps both the entrepreneur and the Venture Capitalists better understand the company’s key financial details and clarify their financial evidence or documentation.

Helps Save Time and Costs

Using a VDR for organization from the start can save time and help entrepreneurs have exactly the facts they need when they’re needed, no matter where they are. 

Monitors User Activity

Every step made in the VDR is traceable, which is a great advantage for the most privacy-sensitive users. VDR thus gives you insights into what information has been accessed by interested parties and more importantly what has been left aside unseen.