A Virtual Data Room or VDR is an important aspect of document storing and handling in any business. A VDR is an online repository of digital version of business documents. Additionally when it comes to a startup, there are various aspects to consider. A virtual data room can only help make your life easier as an entrepreneur.
Some of the activities involved with the initial phases of a startup are – fundraising, launching new partnerships, making acquisitions, working on projects, communicating with investors, advisors and board members etc. All of these activities need an extensive amount of dealing with papers and information about the startup. This can get tiresome and time-consuming if done with physical papers. Here is where a VDR comes into action. With its numerous facilities and features, a virtual data room can be an excellent option to store all your business related information for easy and quick access, control and handling.
Why does your startup need the services of a Virtual Data Room?
If you have never had experience in dealing with VDRs, you might feel a little skeptical about using them. However the below points which illustrate how having a VDR service can help your startup, should be enough to convince you to get one.
A VDR enables secure storage and handling of data. This is because VDRs have the options to enable the administrator to decide who can have access to which files of information. He also has the option to grant and revoke access. Thus VDRs enable a secure access of data. Not only this, all the secret and confidential information you store in your virtual data room is kept safe by use of passkeys and encryptions. Such information can include details pertaining to your startup, or details of your employees and partners. Certain features and security protocols of the VDR prevent taking screenshots or copying and pasting data texts.
- Ease of access
VDRs make accessing of business information not only secure, but also easy. Anybody with access can view the information stored in the VDR at any time and from any corner of the world. Those with access can also conduct meetings, work on projects together as well as share and appraise data, or conduct any other sensitive activities within a secure environment.
- Low setup and operational costs
A virtual data room is less pricey to setup and operate as compared to physical spaces used to store physical documents. A VDR also costs less in the long run. You save a lot of money which would otherwise be spent on printing, arranging, purchasing files and folders, or traveling back and forth to the physical location where all data is stored. Delivery and fuel costs too are thus cut down, and your capital can be used more fruitfully in developing other aspects of your startup.
- Transparency with investors
Investors need to be kept informed about your business at every step, that too in the most transparent manner. An online repository like the VDR enables them to keep track of all operations by your startup in a transparent and secure way.
Eliminating the use of so many papers definitely makes for a more eco-friendly and sustainable option to run a business. While you grow your startup, you thus also get to contribute towards the environment!