Most people think of data rooms as an instrument for completing due diligence in mergers and acquisitions (M&A), but they can also prove useful in capital raising. Startups may want to use data rooms to share information with investors, particularly if they are in the final stages of a fundraise. A data room that is equipped with the right features can speed up communications and boost trust with investors.

Typically, a data room will include a dashboard, which will provide a snapshot of recent activity and notifications. Users should be able set up their preferred dashboard, and also adjust click resources tech3shed.org/all-you-need-to-know-about-data-room/ their security and notification settings. When logging into the system, users will be required to enter their email address, confirm the Terms of Privacy and Use and then change their password protection settings.

Users will be able to browse and download documents once they are logged in. A data room should have an index that enables users to quickly locate the document they’re looking for and, most important, it should be easy to edit the file if needed. In addition, a data space must be able to track engagement on individual documents.

A data room should contain an area for Q&A where users can ask questions. The platform will automatically categorize questions and responses and can determine certain words or phrases that need to be redacted based on its own artificial intelligence engine. The system will then label these sections with an arrow of red and mark them accordingly as a future reference.