Startups must scale quickly. Data rooms are a great solution for finding investors or partners, or managing growth. These virtual spaces allow startups to safely share sensitive information with the right parties, while remaining in control of the documents throughout due diligence and beyond.

The most obvious use for a startup data space is fundraising. By providing a central location for due diligence data, it gives founders the chance to impress investors by demonstrating the company’s organization and transparency.

Using a VDR to share investor-specific information such as growth reports, financial updates and intellectual property with prospective investors helps bolster the case for why the startup should be funded with funds. Furthermore, the built-in requests management feature lets all due diligence documents to be shared with investors in one place, eliminating the need for Excel trackers and individual emails.

Certain providers offer free trials to start-ups. This lets them test the software and discover features that could be beneficial. Using these trial periods, founders can practice presenting to investors and reenact how the VDR would function in a real due diligence process. This is important as it will allow them to determine which service providers will have the greatest impact on their capital raising process without creating unnecessary expense or delay. In addition they can focus on their check my blog pitching and negotiation strategy, rather than technical details, startup data rooms can help speed up fundraising.