Data rooms are typically used to conduct due diligence on mergers and acquisitions. However they can be useful for raising capital. Startups might make use of a dataroom to share resource documentation with investors. This is particularly true when they are close to the close of a fundraising campaign. A data room that is equipped with the right features can speed up communication and improve trust among investors.
Typically the data room will have a dashboard that provides an overview of recent activity and notifications. Users will be able to configure their preferred view of the dashboard, as well as adjust their security and notification settings. After logging in to the system, users will have to enter their email address, confirm the Terms of Privacy and Use, and adjust their password security settings.
Once users have logged in, they’ll be able to browse and download documents. A data room must include an index that helps users find the document that they are searching for. It is also possible to edit if necessary. A data room should also be able to monitor the engagement of specific documents.
A data room should include an area for Q&A where questions can be asked and answered. The platform will automatically categorize the responses and questions and can determine specific terms or phrases that need to be deleted based on its own artificial intelligence engine. The system can then mark these sections with an arrow in red and mark them accordingly as future references.