Data rooms are typically used to carry out due diligence during mergers and acquisitions, but they can be useful for raising capital. Startups might utilize a data room to share documents with investors. This is particularly the case when they are nearing the close of a fundraising campaign. With the right features, a data room can simplify communication and increase investor confidence.
Typically the data room will include a dashboard, which will provide a snapshot of recent activity and notifications. Users will be able to personalize their dashboard and adjust their security and notification settings. After logging in users will be asked to enter their email address, consent to the Terms of Privacy and Use Policy and then adjust their the password security settings.
Once users are logged in, they will be able to view and download documents. A data room should contain an index that allows users to easily find the document they’re looking for, and most importantly, it should be easy to modify the file if needed. Furthermore, a data room should be able of tracking the level of engagement for each document.
A data room should include an area for Q&A where questions can be asked and answered. The platform can categorize the responses to questions and even pinpoint specific phrases and words that need to be deleted using its proprietary artificial intelligence engine. The system can then mark these sections with the red arrow and mark them accordingly for an upcoming reference.