Virtual data rooms: The key to effective financing projects
Virtual data rooms (VDRs) such as netfiles Deal Room have proven themselves many times over as secure platforms for the exchange of sensitive information. One useful side-effect is that they also optimize due diligence processes – which is why their importance in the context of venture capital (VC) transactions has grown over time. Both companies in need of funding and potential investors thus benefit from the numerous advantages of a virtual data room.
Due diligence – Efficient and transparent
Due diligence processes can be handled both more efficiently and more conveniently with a virtual data room. Why? Because companies can make the necessary data available quickly, easily, in a clearly structured form and on one central platform. In addition, they can keep track at any time of who has viewed what documents – a clear indication of how seriously potential investors are interested. For their part, investors have round-the-clock access to all relevant documents and can analyze them conveniently from any location.
Tools enabling all stakeholders to communicate and collaborate further simplify and accelerate processes, especially in the context of complex financing projects.
Security – A must in all financial contexts
Financing projects give top priority to safeguarding intellectual property and confidential financial data. Leading providers of virtual data rooms – such as netfiles – meet the strictest possible security standards thanks to leading-edge encryption technologies, highly secure data centers and granular access rights, for example.
ESG considerations – Built in by default
A company's position on environmental protection, social responsibility and responsible governance can significantly impact its market valuation. It is therefore no wonder that due diligence audits these days also take a very close look at these three aspects under the heading of ESG. Leading data room providers such as netfiles respond by modeling the most important ESG criteria in their default virtual data room index. This makes it easier for companies to fill the data room with the information they require and make sure that no important aspects are overlooked.
Huge impact – Manageable costs
Scarcely anyone still exchanges confidential documents via e-mail or even in physical data rooms. Why? Because of the potential security risks when transferring materials by e-mail, but also due to the considerable logistical effort involved in exchanging printed documents. A virtual data room addresses both issues: On the one hand, it guarantees compliance with the strictest security standards. On the other hand, it can be set up quickly and is easy to use. In addition, a virtual data room can grow flexibly as a company's needs change and evolve. Any company can start out with an entry-level subscription and increase the number of users and the available storage space as and when necessary.
Would you like to know more?
Go here for more information about the benefits and functionality of the netfiles Deal Room. Alternatively, contact us directly. We look forward to hearing from you!