All investors want to know everything about startup projects before they decide to invest. In this case, the ability to get all the necessary information quickly and in a secure manner is a basis for a successful business partnership. So, how to use data room for data exchange with potential investors?
How to interact with investors in a data room?
Maybe a company has already been founded or your startup is already making its first sales. But now the growth phase is following and you want to get off to a flying start with your startup. Usually, the limiting factor is not creativity, time, diligence, or a strong founding team, but simply: capital. That’s why it’s important not only to combine skills in the team within the framework of the actual start-up project but also to master the basics of fundraising.
Many founders think that it makes particularly good sense to simply send their business plan to the investor email address without prior contact and wait for feedback. But that is rarely well-received by investors and usually does not lead to the goal. It is much better to get in touch with an investor through a recommendation or at conferences. In general, it is important to have a good business collaborative workspace to get new ideas and, to find a suitable investor. In this case, a virtual data room is a perfect solution for interaction with investors.
According to datarooms.com.br, the implemented data room solves the problem of document flow optimization. The main advantage is the reduction of the search time for the necessary documents. If necessary, employees and investors can always use the automatic search function.
What are the data room functions?
The digital data room allows investors to automate the development and approval of all documents of the organization, distribute documents for review by a wide range of employees, issue instructions and monitor their implementation, as well as create arbitrary business processes to solve any problems of the organization.
An electronic data room is a full-packed digital platform that provides multi-user access to electronic documents. The electronic archive is designed to perform the following functions:
- creating a catalog of documents with a specific hierarchy;
- distribution of information by type of documents;
- storage of documents in electronic form;
- providing users with access to documents;
- viewing and working with electronic copies;
- search for a document both in the catalog and in the specified parameters;
- document backup;
- printing of documents;
- system administration (registration of new users, work control, granting access rights, etc.).
A secure data room supports the full life cycle of working with documents in electronic form the data room, starting with the preparation of electronic versions of documents, and ending with the disposal of storage units after the appropriate deadlines.
Documents can be grouped into folders. But a more preferable option is to store documents in the electronic structure of the product. Documents can be associated not only with files from storage but also with folders. Each file has its card – a set of parameters that characterize this document. In addition to the card, the document has a state and a stage that determines its phase in the life cycle.
Besides, the program defines the procedure for collective access to classified information, defines the procedure for delegating responsibility and authority for each document, and implements an electronic approval system.