A data room is a central storage for sensitive information regarding business transactions. It is secured and accessible only to people with access authorization. It also comes with advanced features that make it easier for stakeholders and stakeholders to collaborate with each other, ask questions and communicate. This keeps the flow of deals going and helps prevent leaks of crucial information during due diligence.
To create a room for data you first need to determine all documents that should be included, such as financial reports, legal agreements, or intellectual property. After you’ve made the list of documents, you’ll need to organize the information into folders and subfolders in order to make it easier for you to navigate. You can create a «Competitive Analyses» folder to display your research and compare your service or product against other competitors. Include an «Customer Referrals and References» folder to showcase the positive feedback of your customers.
For startups, a data room can help in raising capital and navigating M&A processes. It’s a simple way to make available investor material including your pitch deck, terms sheet, and the most recent round of funding. This will allow potential investors to gain an understanding of the value your business has added and help speed up the process of raising funds.
Some of the most popular virtual data rooms include VDRs from Firmex and Intralinks. Both offer a wide range of security features including watermarking and two-factor authentication. Firmex also comes with the ability to monitor usage which allows you to track who is viewing what documents and at what time.