https://www.tech3shed.org/online-due-diligence-data-room-things-to-know
Data rooms are usually used to conduct due diligence during mergers and acquisitions. However they can be beneficial in raising capital. Startups might consider using data rooms to share information with investors, especially if they are in the final stages of fundraising. A data room with the right features can streamline communications and boost trust with investors.
A dashboard is usually included in a data area and it provides an overview of the most recent notifications and activities. Users should be able to alter the dashboard view, as well adjust their security settings and notifications. After logging in to the system, users will be required to enter their email address, agree to the Terms of Use and Privacy Policies and change their password protection settings.
Users will be able view and download documents after they have logged in. A data room should have an index that enables users to find the document they’re looking to download, and, perhaps most importantly it should be simple to edit the file if needed. A data room should also be able to monitor engagement on specific documents.
A data room must include an area for Q&A where questions can be posed and answered. The platform is able to automatically categorize the responses and questions and even determine certain words or phrases that need to be deleted based on its proprietary artificial intelligence engine. The system will then label these sections with an arrow in red and mark them accordingly as an upcoming reference.
