Most people think of data rooms as an instrument for completing due diligence during mergers and acquisitions (M&A), but they can also prove useful to raise capital. Startups might want to utilize data rooms to share documents with investors, especially if they are in the final stages of a fundraising. With the proper features, a data room can improve communication and increase confidence in investors.

A dashboard is typically included in a data room, and it provides an overview of the latest notifications and activity. Users will be able to set up their preferred dashboard, and alter their security and notification settings. Upon logging in users will be asked to provide their email address, consent to the Terms of Use and Privacy Policy and modify their the /tech3shed.org/online-due-diligence-data-room-things-to-know/ password security settings.

After users have signed in, they will be able to browse and download documents. A data room should contain an index that enables users to find the document they’re searching for, and most importantly, it should be easy to modify the file if needed. Furthermore, a data room should be able of tracking engagement on individual documents.

A data room should contain a Q&A section where questions can be posed and answered. The platform can categorize the responses to questions and even pinpoint specific words and phrases that should be deleted using its proprietary artificial intelligence engine. The system can then label these sections with the red arrow and mark them accordingly as a future reference.