Why Startups Need Virtual Data Rooms?

What are Virtual Data Rooms (VDR)?

Virtual Data Rooms are online depositories that are used for storing and sharing sensitive information. Data is the most important thing that a company has, so keeping it safe is of great importance. Using VDR we can store, manage, and share files with ease. On top of that, there are plenty of useful control features that we can take advantage of like being able to see if the recipient has opened a file, how much time did they spend reading the document and being able to see if they shared those files with a third party and much more.

Key benefits for startups when using VDRs

There is surely no shortage of reasons why startups need to consider using Virtual Data Rooms in their everyday activities. They are very easy to use and are cost-efficient. To give you an idea about the possibilities that VDRs provide, we are going to mention a few of them.

Secure Document Storage and Accessibility

Keeping your documents safe and private should be your first priority. VDRs will keep you covered, providing a highly secure and controlled environment for all of your data. Being able to choose who can view, or download your files, how much time they spend reading them, and if they tried to share them with a third party. Maintain a detailed audit trail that records every action taken within the data room and be able to prevent your documents from being shared with third parties.

Document Management and Collaboration

Virtual Data Rooms simplify the organization and management of documents. VDR providers like Orangedox will directly sync with your Google Drive and you will be ready to go in seconds. Having in mind that startups collaborate remotely with many employees and partners outside of the company, this is a convenient way to have real-time access to the files while working together. VDRs provide a centralized location for all of the company documents and give you the possibility to set specific permissions for users and grant them different levels of access to documents depending on their role in the company.

Fundraising and Investor Relations

Using VDRs we can simplify the process of fundraising and negotiations with potential investors in a way that we can share all the sensitive information like our business plans, financial data, and any other confidential documents in a way that we can be sure that they will reach only the individuals we initially intended to. We can also set a date range in which they will have access to the data they need to analyze. This is very convenient during fundraising rounds and when the startups are being evaluated by potential investors.

Convenience and Cost Efficiency

Using a virtual data room can save you time in your everyday activities and will reduce the cost of operation compared with traditional physical data rooms. Monthly rates for using VDRs are highly acceptable for small businesses. This makes them the perfect option for any startup that has any kind of remote working or collaboration with outside partners.

Conclusion

Choosing the right VDR provider is of great importance. Orangebox is here to be part of your everyday activities. From enhanced security, efficient document management, and collaboration features to having records of all activities within VDR all while being directly synced with your Google Drive.

Start your 14-day free trial of Orangedox Virtual Data Rooms and see what Orangedox can do for your business.

Orangedox provides one-click create virtual data rooms that are directly synced with your Google Drive folders.