A Virtual Data Room (VDR) is often called a corporate repository, and serves as an online repository of final business documents. VDRs are typically used to house and share critical business information with investors or company leadership while providing a secure and controlled environment to do so. While many startups may fall into the trap of utilizing collaboration tools like Dropbox or Google Drive for this type of storage, a VDR is a more secure and dedicated service made specifically for business.
Why a Startup Needs a Virtual Data Room
Starting a business today forces you to have mobility in mind. Startups must make smart decisions to remain profitable and relevant to new investors and potential customers. That means having access to the corporate information from anywhere. Not to mention, physical storage space is expensive and unnecessary. With a VDR, all documentation is accessible online in a highly secured environment. This provides not just convenience but showcases that security is a priority for the organization.
Preparing for Opportunities
With a VDR, sensitive company information is controlled and monitored, allowing multiple parties to conduct due diligence at the same time. Multiple party involvement improves time management by getting an early start on contracts, organized leases, NDAs, and employment offers. Additionally, company transparency also improves, because a VDR provides access to all document activities. Employees know when a document was reviewed, the time the review happened, as well as how often it was viewed. This access to information provides a wealth of knowledge about the level of interest of a customer or investor.
Benefits of Going Paperless
The list of benefits of going paperless are seemingly endless. Here’s why companies love making the change:
- Business documents don’t end up in the wrong hands.
- Access is available everywhere, so no need to be in the office to get what you need.
- Save money renting space to house documentation.
- Disasters or emergencies won’t destroy your information.
Raising Funds and Beyond
Even very new startups have proprietary information that needs protection. During fundraising, you will need to share a wealth of information with potential investors. Unfortunately, only a small portion of people you share information with will actually become your investors. Because of this, you will need to take precautions to protect the information you have shared with non-invested parties. A VDR provides the ability to restrict access so only current investors can gain access. This provides a constant level of protection because as investors and times change, you can easily monitor visibility because an investor today may end up being a competitor tomorrow.
At SecureDocs, we have confidence that our VDR is a robust, easy-to-use and affordable solution for secure business document storage. It’s not just easy-to-use, but it’s simple to install. And most importantly, it’s secure enough to handle the needs of your growing business. We’re so confident you’ll love it that we let you try it without a commitment. So go ahead, see for yourself why so many startups are reaping the many benefits a SecureDocs virtual data room can provide.