Data rooms are commonly utilized to complete due diligence in mergers and acquisitions, but they can be useful for raising capital. Startups could make use of a dataroom to share documents with investors. This is especially the case when they are nearing the close of a fundraising campaign. With the right features, a room can help streamline communications and increase investor confidence.
Typically, a data room will include a dashboard, which gives an overview of the latest activity and notifications. Users should be able customize their preferred dashboard, and change their security and notification settings. After logging in users will be asked to provide their email address, consent to the Terms of Privacy and Use, and adjust the password protection settings.
Once users are logged in, they will be able to browse and download documents. A data room must have an index that enables users to easily find the document they’re searching for, and most important it should be able to modify the file if required. A data room should also be able keep track of the number of people who have used specific documents.
A data room should contain an area for Q&A where questions can be asked and answered. The platform can categorize the responses to questions and even pinpoint certain phrases and words that need to be censored using its proprietary artificial intelligence engine. The system will mark these text sections with the red flag and label them appropriately for future references.