Documents hang with the coordinators, postponing the start of the investment process, the delivery of products, and the receipt of money. Virtual data room speeds up the process of creating and agreeing on contracts and provides control over the execution of each stage. Here is more about it.
Why do investors choose a data room solution?
The main tool for attracting investments in a startup is to increase the publicity of the company. It is important that the project act as a resident of various accelerators, tell the company’s history in the public field, and show good results in key business indicators. In this case, the project has every chance to attract the attention of the investor.
Along with the dissemination of information about a startup, the founders of the project need to reach out to the right investors on their own, taking into account past investments and transactions. In any case, startups and investors study each other for a long time – and only then decide on cooperation.
The investment attraction strategy is based on three principles:
- Transparency for investors. Investors have access to all documentation on projects, on the activities of management companies, receive the necessary advice from the developer’s specialists.
- Minimization of investors’ risks: projects with a full set of permits are offered for investment programs, the developer’s liability is insured, and reliable partner banks are involved.
- The convenience of investment: more and more investors choose securities instead of shares of projects. These are assets that are much easier to manage and with which it is much more convenient to diversify your investments, even with relatively small investment capital.
Virtual data room: documents should not slow down business
To realize this strategy, modern developers use virtual data room solutions when organizing due diligence procedures. It is a cloud-based digital platform that provides transparency in business operations. The software allows you to fully automate the work with documents in the organization, significantly increase the productivity of its employees, optimize their interaction, and simplify the tasks they solve.
According to https://datarooms.com.br/, the program is ready to work immediately after logging in and provides:
- creation, registration, and storage of electronic documents, creation of a document card;
- import and export of documents, including scanning paper originals and printing the required number of copies;
- movement of a document along a given route, the ability to track it;
- keeping a history of document changes;
- setting up notifications about the passage of the document and its status;
- keeping logs, monitoring deadlines, creating reports;
- ensuring the safety and confidentiality of information, including control and differentiation of access, the use of a digital signature, etc.
The system contains several built-in standard business processes that cover most of the workflow automation tasks. By using these processes, you can get up and running with the system very quickly. In addition to the standard ones, users can develop their processes, as well as make the necessary adjustments to existing processes, using a convenient toolkit built into the system.
Data room software allows investors to work not only with internal documents of the organization but also fully automate the processing of incoming and outgoing documents. Such automation significantly reduces the processing time of incoming documents and simplifies their accounting, making the entire process from the receipt of an incoming document to the sending of an outgoing document transparent and manageable.