Investing involves working and researching a lot of information and implementing interactions with various projects and startups. It means that VDR for investors should offer a unique set of services.

All investors are different, but they all have something in common: they want to get data about a project or a startup before deciding to invest. One of the vital criteria is the ability to get all the necessary information quickly. So, they are looking for expert online data room software like dataroom-providers.org that they can trust and rely on. And this is the foundation for a successful business partnership. Searching for projects for investment is scrupulous work 24/7. Therefore, the more they prepare in advance, the less stressful and difficult this process will be. Using virtual data room services is one of the key steps in this preparation.

Virtual Data Rooms & Their Functions

To make an investor pay attention to a particular project, it is necessary to present it favorably. The investor is interested in financial data, tax cleanliness of the company, etc. It's fortunate if company representatives have the opportunity to come to the meeting in person, but if this is not possible? Which is the way to share confidential information with a potential partner? How to protect your intellectual property from intruders? The best data room providers will help you with this! They allow you to quickly download large amounts of information and then provide limited access to it to trusted persons. However, investor-oriented VDRs offer specialized data collection.

Today, electronic data room is necessary for investors to decide on investing money in a particular project. These data rooms are digitally protected and can only be accessed through a secure login. It allows finding out exactly who accessed the data room and which files were viewed or downloaded. So, what kind of data do investors need:

• Company overview. VDR offers an executive summary that describes the company. All precautions have been taken so as not to disclose any confidential information. Nowadays, VDRs are increasingly implementing CIM, which is the main marketing information. This document contains background information used by potential investors to familiarize themselves with the company.
• Financial data. Most of the information used in any investment transaction consists of financial records. These will include financial statements for several years showing income, expenses, profits, and projected growth. These are audited financial statements. Financial data is the most essential information that investors need to determine the level of interest in pursuing a company.
• Legal data. This category should include a wide range of information. These are partnership and operating agreements, articles of incorporation, all types of contracts, data on pending or past legal claims, etc. The investors need this data to make sure that the company is not burdened with an agreement that may affect the future values ​​of the company.
• Customer data. This data will include a list of major customers and the amount of income the company has received from them. This data is essential for investors to demonstrate a diversified customer base and map out opportunities for future growth.
• Asset Data. Today many companies use equipment rented from third parties. This information must be available to the investor.
• Real estate data. The virtual data room should provide information that confirms the ownership of a particular property involved in the business.
• Employee data. The VDR should include basic information on employees. Investors must understand the degree of benefits of each employee. Perhaps it would be more expedient to refuse the services of some of them.

Since many vendors offer their services today, investors need to make data room comparisons to find out which VDR to choose.

VDRs For Investors: Technical Stages

Virtual data room providers are implementing a whole range of measures to smooth out interaction between investors and potential projects:

• Thorough configuration of the access rights of company employees to confidential information;
• Multilevel security system prevents unauthorized access and hacker attacks;
• The ability to encrypt and protect downloaded data from downloading and copying;
• Tracking any user activity implementation, which minimizes the risk of information leakage.

Investors planning to invest money need to understand what types of data they need. For example, an investor who has just entered the process may have limited access to preliminary financial records. Though, investors who've signed a letter of intent (LOI) will have access to the full dataset. At the same time, the reliable data room software guarantees data confidentiality at any stage and to any participants.

Summary

Data room services are a whole range of measures that allow investors to get the information they need. Companies can download the documentation and share it securely with prospective investors. Such software allows users to view the document and set authorization parameters. It provides data (personal and financial) to be exchanged confidentially between many partners.