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Improve Investor Communications With VDRs


A global Ernst & Young survey rated improving investor relations as one of the top ten business opportunities that would have the greatest impact on organizations across a variety of sectors in the years ahead.

That’s because investor relations plays an important role in an organization’s ability to remain competitive, impacting customer reach, operational agility and stakeholder confidence.

While the Ernst & Young survey found it was not currently a high priority for many companies, improving investor relations can offer significant return on investment for those companies who take the time to create and implement a strategy for better investor communications.

And the Ernst & Young survey found it was an opportunity that executives in all sectors were well positioned to take advantage of.

Creating An Investor Relations Strategy Using A VDR

Many members of the financial community are familiar with using VDRs as a tool during mergers and acquisitions. They can also be a sophisticated and simple way to communicate with existing and potential investors during fundraising.

A VDR can dramatically streamline and accelerate the process by providing a centrally organized information source that is accessible from the convenience of an investor’s own office via a secure web portal.

Since investors typically need large amounts of detailed, confidential information, a VDR provides a method for sharing data without the security risks of other tools, such as e-mail—which is a well-known security risk.

Beyond investors' familiarity with VDRs as a tool and the inherent security benefits, most VDRs also offer other advantages.

Additional Advantages of Using A VDR

With a VDR it’s easy to host multiple potential investors simultaneously. The account administrator can easily see who has access to which files and can grant additional access as necessary.

A variety of permission-based user roles offer the ability to control not just what investors can see, but also what they can do with the information they access.

Finally, audit logs offer valuable investor insights by allowing account administrators to see the activity levels of various investors and therefore better gauge their true interest.

That, in turn, saves company time and resources by allowing businesses to focus on those investors who are most engaged. Audit logs can also help a company determine what information is of the most interest to those investors and prepare in advance for potential questions.

Are you considering a VDR for fundraising? What features are most important to you?