Nuban Institute

The Benefits of a Data Room

If you’re planning to sell your company or raise data exchange funds, it’s likely you have lots of data and documents to provide potential investors. A virtual dataroom, also referred to by the term due diligence data room, is an online repository that permits you to securely store and share information and documents with the right people, at the appropriate time.

The benefits of a digital dataroom include:

Secure storage and sharing of sensitive data: Using a virtual data room allows you to securely share your data with multiple parties and still control who has access to what. This speeds up the due diligence and reduces the risk of sensitive data being leaked.

Improved collaboration: Using a virtual data room makes it much easier for team members to work on projects together, even when they’re located in different locations. It’s also simple to manage access and permissions for projects, so that only the correct users have access to the correct information.

Easy-to-use interface: Choosing a platform with user reviews and a plugin-free interface that is compatible with your software requirements will make it simpler for users to get up and running. Ideally, you should also search for a service that offers 24/7 assistance, so that should you run into any issues, you can get help promptly.

Choose the documents you’ll include in your data room: You’ll be required to include legal and financial documents, including financial statements, contracts and intellectual property documents. Also, you’ll need to include your cap table, which details how much of your company each investor owns.

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