How To Choose A Data Room Software For Sharing Data With Investors

Data room is a necessary software for organizing the efficient due diligence procedure. In this article, we will analyze the most common criteria for choosing the best solution for investors` needs.

Virtual data room for investors: why do they need it?

Today, competition in business is won by those who can better, faster, and more accurately assess risks and test hypotheses. Therefore, to form a complete picture of the object in which it is planned to invest, it is necessary to conduct an independent analysis and assessment of investment risks. So, investors conduct due diligence procedures, aimed at a comprehensive verification of the commercial attractiveness and legality of an investment project. The main purpose of investment risk assessment is to reduce and minimize the possibility of losing money and property, to eliminate the risk of acquiring blocks of shares at a significantly inflated cost, and unfair performance of obligations.

During this complex analysis, large arrays of confidential data are processed. So, there is a need to organize a well-protected collaborative workspace. In this case, a digital data room is the best alternative. 

Virtual data rooms are smart programs that help simplify the workflows of a company whose activities are aimed at working with customers. This service manages the business, launching the process of integrating customer data and building a scenario for further relationships with it. The platforms are now the best solution for any company that seeks to optimize its business processes.

With data room, investors get the secure alternative for file exchange with contractors. The encryption and transmission of business-critical data are carried out according to the latest standards. The administrator of the data room ensures who has access to the data and that it is always optimally protected. This enables transparent and holistic information management.

Basic criteria for choosing data room vendor

There are a huge variety of data room platforms on the market, which can differ from each other in various criteria, including functionality, budget, and infrastructure. And the question arises of how to choose the ideal software solution. The main rule here is: software must match the size of the business. Just as iDeals is not suitable for a small startup of three people, it will be difficult for a large business to fully work only in spreadsheets.

So, there are the following criteria for choosing the most reliable and suitable solution:

  • interface complexity;
  • system security;
  • platform scalability
  • the ability to restrict access to information;
  • the presence of the function of archiving actions with clients: who and when changed the data;
  • integration of the data room with other systems and services;
  • price.

Intralinks – a win-win solution for investors

The data room provides everything that a large organization needs – it is an integrated system that allows you to comprehensively solve a fairly wide range of tasks. It includes the necessary functionality to automate business processes: routing, approval, distribution, notification, and execution control. Intralinks is quite scalable, all the information that is stored in the system is managed by a dedicated server component. The platform contains mechanisms that allow you to manage the storage of information: it supports versioning, publication, access, location of information and provides the ability to archive.

The system can work efficiently in a distributed architecture in geographically dispersed subdivisions thanks to the implemented mechanisms for information replication and synchronization, as well as centralized administration.