When your startup is ready for funding, the first meeting you have with potential investors ends with a request to access your “dataroom.” What does this mean? What should you include?
A data room is an electronic vault for documents of a company. Its goal is to allow authorized people to review sensitive data safely. It is widely used in M&A Due Diligence and in other business transactions involving large volumes confidential data. The best data rooms online offer security protocols and standards for removing or replacing information as well as software search functions that ensure only authorized personnel have access to the information.
The use of a data room is more efficient than the traditional method, which involves printing and distributing hard copies. Data can be accessed by anyone with an internet connection, and a computer, anywhere in the globe. Creating a virtual data room also means you can be sure that your information is not vulnerable to fire or other natural disasters.
When deciding which data room provider to choose, consider how many employees will need access and what their capabilities are with technology. You should look for platforms that offer free trials to see how they work before you invest. It’s also worth asking your peers which platforms they prefer to use and if they have any recommendations. This will help you narrow your options and make the best choice for your needs.