Main requirements for the virtual data room to engage investors

The rapid growth of information used in the management of the institution, its structural complexity, and rapid updating make it necessary to use integrated data rooms. So, how can this software help investors?

When do investors need data room software?

In the conditions of intensification of market competition between enterprises for new markets for finished products, the assessment of the investment attractiveness of an individual entity is an important issue. Because, on the one hand – this is the basis for the development of its investment policy, and on the other – the ability to identify shortcomings in the enterprise, to provide measures to eliminate them, and improve opportunities to attract investment resources. And this helps investors decide on their investment decision.

Most investors want to invest in a project that is carefully designed and where they can clearly see the full picture of income. Therefore, it is important to organize due diligence with financial indicators, which will take into account all the nuances. Due diligence is an analysis of indicators of financial stability, solvency, liquidity, profitability, etc. It is a complex and tedious procedure that requires a lot of time and analysis of large arrays of documentation. Thus, a virtual data room is a tool to support decision-making in today’s organization. It is a cloud-based platform that enables secure data repository and file-sharing between contractors and employees.

According to, the electronic data room greatly increases the speed of information processing. It significantly reduces labor costs for searching for documents, familiarizing themselves with them, copying them. The software simplifies the due diligence procedure for the investor in the following way:

  • Security – data is transmitted only over encrypted channels;
  • You decide which of the employees to give access to certain documents;
  • Convenient systematization – you do not need to think about how to organize your contracts;
  • Quick search – you can at any time find the desired document by its number or other parameters;

What criteria are important for investors when choosing a data room?

The creation of an integrated data room management system involves primarily a faster movement of documents, which will increase the efficiency of business transactions by significantly reducing the time of preparation and decision-making through automation of collective creation and use of documents in companies.

So, there are the following requirements for the virtual data room to engage investors:

  • Data security. When storing particularly important information, it is advisable to back up all data and servers on an ongoing basis. Due to this, the data of the repository and any server of the information processing center can be restored according to the allowable regulations for a period of time.
  • Q&A An organized Q&A process is indispensable for many projects and serves as “life insurance”. A Q&A allows the administrators to assign different roles in the Q&A, i.e. users can be authorized to “only ask or answer A question and approve or reject question”. A Q&A protocol is also often used as an attachment to the purchase contract.
  • Tech support. To be clearly innovative and not to miss the connection to new technologies, the data room provider must provide experienced consultants who understand their customers and support them with their experience and know-how.
  • User-friendly interface. The system should have an open customizable interface for possible further development and integration with other distributed systems.

What is important is the strategic orientation of the data room provider and its development, which should ideally be in-house in order to be able to react quickly to customer requests.