A modern data room allows companies to plan to manage and gain value from M&A deals, fundraising rounds, asset sales as well as due diligence and other important business processes. It is also utilized to assist in a variety of other important business processes such as governance, compliance and tenders.
Virtual data rooms are widely recognized as providing the level of security required to safeguard confidential information against unauthorised viewing, downloading, malicious external attacks as well as other risk factors. They offer a superior alternative to file sharing and email, as well as paper-based storage for sensitive data.
Look for a provider that allows you to customize the permissions granted to each document and folder so that users have limited access or full access to certain documents. This will ensure that your sensitive information is only being seen by those you would like it to be seen by. It is also worth looking into a service that has the capability to add annotations to documents. This is a fantastic tool to highlight crucial information or questions you want to be answered. The annotations can only be viewed by you, not the person who you share the cloud-based document sharing system document with.
Lastly, consider including an area for reference and referral in your investor data room to show that you have a strong network of current investors and customers. This will help to build confidence and trust that you are a safe option for them.