www.vdrdesign.com/virtual-data-room-for-startups/

A Virtual Data Room Business is an secure repository for sharing important private documentation and the capability to track and monitor who has access to information. VDRs are commonly used across various industries and functions. They are especially beneficial in the course of negotiations, when third parties often have to access large amounts of confidential data. These third parties could be authorized employees or solicitors who work on behalf of the buyer or seller. It can be difficult to communicate information via email or hard copies. A VDR online makes it easy to coordination of due diligence.

VDRs are typically employed by companies looking to raise capital, undergoing an IPO, or undergoing a merger and acquisition (M&A). During the fundraising phase, a business may need to share information with up to fifty investors per week. A Virtual Data Room can help to manage the influx of information and third-party access, while retaining control over who is allowed access to data and documents.

Investors often ask for the use of a VDR prior to the release of terms sheets, to ensure that they have easy access to information on the company, in addition to any other publicly accessible material they may find online. It can be beneficial to utilize a VDR following a deal has been completed to provide investors with key highlights such as financial performance and qualitative information about the company. Certain companies provide their investors the KPIs on a dashboard that they can access in real-time.