Investment Banking

How to Make the Process of Capital Raising Easier with a Virtual Data Room

capital raising

Running a business is impossible without financing. Companies might choose to raise capital in a number of ways. In general, capital required to fund internal operations may be based either on debt or equity. Organizations face many risks when choosing improper methods of capital raising. It is necessary to apply correct tools that will help organize and simplify the process.capital raising

Transparency with lenders or investors

Information transparency is one of the most critical things that prospective investors or lenders want to see. People who’re going to invest their money in your business expect to be informed about all operations. Lenders want to be sure that you’ll be able to pay them back with certain interest. In turn, investors want to know whether their money will pay dividends or result in no benefits. This is difficult. You can’t share all your business information with foreign parties because of data leak risks. Using a VDR and all its features ensures maximum data transparency.

A VDR provides you with multiple features for easy and secure document management. For instance, when you upload documents to your data room, they are automatically numbered and then indexed. This allows finding any file you need in seconds. Moreover, due to the Optical Character Recognition feature, you can search for documents by simply indicating word(s) from the document itself.

These features help you better organize financial reports, business plan drafts, sales and revenue sheets, etc. Using a virtual data room helps you keep all sensitive documents well-structured and well-organized with minimum effort.

High security and solid data infrastructure

Security goes next. All data you provide lenders or investors with must be highly protected. In a VDR, you can easily monitor what documents every user (or group of users) uploads, views, downloads, and so on. You can run multiple financing deals with different parties at the same time, using only one data room!

Another VDR benefit is that you can set different permission levels for each party in the room. Enable users to print, download, view, or even upload certain documents to your virtual data room. Additional security protocols prevent making screenshots of your sensitive documents or copying and pasting parts of data from them. There is the “fence view” permission level which limits the amount of data you can see on a document at any given point. Or you can enable dynamic watermarks that contain the user’s personal details. It gives you a complete control over the access rights. All these features ensure that your data will remain secure.

Reduce company costs and maximize profits

As previously mentioned, you can run financial deals with multiple financiers at one time and keep all data confidential. Using a VDR for your business helps significantly decrease costs. Data leaks may cost too much. And a VDR is meant to avoid it.

Moreover, you will no longer have to spend money on processing physical papers, printing and storing them. You won’t have to pay financiers for coming and viewing documents in a physical data room. All data is digital and available for viewing at any time. Think about it: the less you spend on financing process, the more you can put into growing your business.

 

A Virtual Data Room is a unique platform for organizing all your financial documents needed for capital raising. Try it and you’ll see how your company can benefit!

Related topics:capital raising debt financing financial reporting private equity
Got a story? Tell us a story

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2008 - 2016 iDeals™ Solutions Group Privacy Policy
All rights reserved. Various trademarks held by their respective owners.