Data rules the world now! Your start-up is contributing to this vast ocean, and as it grows, you will keep adding to the bytes of data.
By Lori Wade
Do you want your online info to be secure, then VDR–virtual data room is the answer. With physical data like hard-copy files, you can have a storage room with doors locked, but this doesn’t apply to online files. Hence, the need for a virtual data room. More especially, you need a virtual data room as a startup business so that your online files – where your startup ideas are stored will be secure from prowling eyes.
Listed below are six key benefits of the VDR to your startup business.
Secure Storage of Data
Are you worried about how to prevent data breach? Once you have a VDR, only you and approved participants have access, and all other people are shut out. So, your files with sensitive information like the medical reports of your staff, licenses, contracts, info about intellectual property, documentation relating to start-up and financial statements can be safely accessed and retrieved.
Secure Sharing of Data
Moreover, those with access can meet, work together on projects, share and appraise data and conduct other sensitive activities within a safe setting. In fact, each part of the virtual data room has different permission levels. There are also extra security protocols that prevent even approved users from making screenshots, or copying and pasting data parts.
As a startup, every opportunity for you to save money is gold! With a VDR, the overhead costs which accompany physical data rooms such as stapling, printing, powering office machines, copying, file folders, and paper files are removed. Office staff no longer need to edit, audit or file hard-copy files. Consider it; the less you spend on physical data rooms, the more you can input into developing your business.
Fast Decision-Making and Time-Sensitive Projects
Yes, very true! Time is extremely valuable, especially to businesses. And a VDR makes it very easy for you to save time. A virtual data room is online, so it’s accessible to multiple global users worldwide. Thus, when you need to create timely, edit and review sensitive documents, geographic distance is no longer an obstacle. More also, time zones are not a problem anymore because the VDR is accessible and available to all approved users round the clock.
As the VDR is a secure online warehouse, you can engage with prospective investors knowing that all your files are in a single place.
Transparency with Investors or Lenders
Businesses especially startups and growing companies need to curry the favor of either investors or lenders. But one of the critical factors prospective lenders or investors look out for is information transparency. If a party is to invest in your business, they want to be kept informed about all your operations to know if their money will yield applications. In the same manner, lenders want to know that you’re capable of paying back the loan with specified interest. The risks involved in data leaks make sharing all this information difficult. But with a VDR, you are guaranteed optimum data transparency.
The involvement of VDR facilitates due diligence for you to meet the legal requirements for selling or buying an item. The virtual data room is designed in such a way that it precisely documents even the smallest deletion, edit, change or addition. By doing this, it creates an automatic digital log which can be used as proof of compliance for those legal processes.
If you haven’t, you can set up a VDR for your start-up in just a few days. And once it’s operational, you can easily invite users.
Lori Wade is a content writer who is interested in a wide range of spheres from business to entrepreneurship and new technologies. If you are interested in M&A or virtual data room industry, you can find her on Twitter & LinkedIn or find her on other social media. Read and take over Lori’s useful insights!