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Fundraising is a time-consuming, resource-intensive process where investors are searching for equity at startups in exchange for cash. This process requires a well-organized clear and simple to navigate virtual space for sharing essential documents, such as pitch decks, legal agreements, intellectual property documentation, market research reports, employee contracts clients lists, growth plans and more.
A data room is a safe professional, organized, and secure digital filing cabinet which companies use to store and share important documents during the capital raising process. The benefits of using a data room include:
Attracting Investors
A tidy, organized and efficient Data Room improves the overall investment experience. This helps a startup set an impressive first impression, build trust and increase the chances of receiving money from a VC.
Conducting Due Diligence
The use of a Data Room during the fundraising process allows startups to reduce time by putting all relevant information in one location for quick access by authorized users. This reduces the need for back and forth communications, accelerating the decision-making process. Furthermore, a data room’s features such as expiring links, watermarking, password protection and granular permissions give an extra layer of security for sensitive data and guarantee that only the right information gets to the appropriate people.