It is a rare practice when a company functions without the involvements from any external sources. For sure, such businesses exist and their owners may be successful and independent. But in the era when startups turned into a dream of any somehow talented person, the ability to build productive relationships with investors proves to be a pretty important skill. The very process of collecting money from investors and other kinds of donators can be referred to as fundraising. Previously, fundraising used to be perceived as face-to-face activity and as being based on personal donations gathered on the streets and at doors. But today, in the context of successful startups, it has nothing to do with reality. Indeed, from the modern perspective, fundraising is much more global: professional fundraisers are in touch with investors worldwide. It means that a particular company may accept capital from the investors that are scattered around the planet. But the question is the following: how to initiate the contact and to maintain it if you need to attract external capital? The answer is virtual rooms.
Why do you need virtual rooms?
The answer is simple – it would be pointless to deny that the process of fundraising can be improved and simplified with the help of virtual rooms. Along with the possibility to collect donations disregarding the geographical location of the donator, VDRs bring the other advantages to fundraisers and some of them are listed below:
- It is easy to upload all the relevant documents to the cloud and open the access to your repository for all the investors and donators you treat as helpful;
- A VDR is accessible for multiple visitors at the same time: they can enter the room, conduct due diligence and work with the documents as long as they want and none of the teams are restricted in the time allotted to data examination. It means that you may stay in touch with multiple investors concurrently;
- The virtual platform is a secure online storage with numerous layers of protection: data encryption, dynamic watermarks, two-step user verification, virus scanning and firewalls, protection from camera-based attacks – these functions guarantee data safety from theft and misuse. As you are about to share sensitive and confidential files such as financial reports you are interested in getting as complex protection as possible;
- VDRs allow fundraisers to track the activity of all the users that have an access to the room and to follow the actions of the most active and interested visitors. It would help you to detect the most engaged investors;
- The platform simplifies communication between fundraisers and those who are ready to donate: they can interact within a platform as Q&A section provides all the instruments for smooth discussion;
- A VDR is comparatively cheap to set up and maintain. In addition, the room visitors do not have to spend money on traveling and accommodation. It helps you to save your own resources and to show that you care about money of your potential investors;
- As the room is accessible 24/7 worldwide the fundraising is ongoing and a project can be finished sooner;
- When exploiting a virtual data room, fundraisers do not need a special technical team: the room administrator, a dedicated project manager, and a qualified support team are ready to assist and take care of the virtual rooms whenever they are needed;
- A VDR is always characterized by a well-structured and logical file system which is easy to update (bulk and drag-and-drop uploading options) and to navigate (advanced search system, filtering capabilities, in-document linking).
Hence, to open a virtual repository and to invite multiple investors are the best decision you may make on the way to getting the capital you lack. For a reasonable price, you would get a secure environment convenient for sharing confidential data with your potential donators. Eventually, fundraising is likely to be accomplished sooner and with the fewer efforts paid.