The majority of people think of data rooms as an instrument for completing due diligence in mergers and acquisitions (M&A), but they can also prove useful to raise capital. Startups may consider using data rooms to share documentation with investors, especially if they are in the final stages of a fundraise. With the appropriate features, a data room can streamline communication and boost investor confidence.

Typically the data room will have a dashboard that provides an overview of recent activity and notifications. Users will be able to customize their dashboard view and adjust their security and notification settings. Upon logging into the system, users will need to enter their email address, sign the Terms of Use and Privacy Policies and change their password protection settings.

Users will be able view and download documents after they are logged in. A data room must include an index to aid users find the document that they are seeking. It is also possible to edit if needed. A data room should also be able to keep track of the number of people who have used specific documents.

A data room should include an area where questions can be asked. The platform automatically categorizes questions and answers and even determine specific phrases or words that need to be deleted based on its own artificial intelligence engine. The system can then label these sections with an arrow of red and mark them accordingly for a future reference.

tech3shed.org/all-you-need-to-know-about-data-room/