{"id":2152,"date":"2019-10-29T19:52:57","date_gmt":"2019-10-29T19:52:57","guid":{"rendered":"https:\/\/digify.dxpsites.com\/?p=2152"},"modified":"2026-01-20T03:42:48","modified_gmt":"2026-01-20T03:42:48","slug":"choosing-a-data-room-for-due-diligence","status":"publish","type":"post","link":"https:\/\/staging-x.digifyteam.com\/zh\/blog\/choosing-a-data-room-for-due-diligence\/","title":{"rendered":"\u9009\u62e9\u6570\u636e\u5ba4\u8fdb\u884c\u5c3d\u804c\u8c03\u67e5"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

<\/p>\n

Find out how to choose a virtual data room that sets you up for a successful investment due diligence process.<\/strong><\/p>\n

<\/p>\n

If you’re seeking Series A funding, you’ve already reached a major milestone. According to a recent study<\/a>, far less than half of startups that successfully raise Seed\/Angel funding ever reach the Series A stage.<\/p>\n

<\/p>\n

\"\"<\/figure>\n

<\/p>\n

 <\/div>\n

<\/p>\n

In all likelihood, you’ve made it this far because you’ve earned it. You have a rock-solid business model. You’ve landed a series of key strategic partnerships. You’ve successfully executed an ambitious go-to-market strategy. Your product or service is already getting traction. And you’ve shown that you can scale. Yet to fund further growth, you will need institutional funding, and that will require that you get buy-in from institutional investors. However, in order to prove to these seasoned VCs that you’ve come as far as you indeed have, you will need to send your most valuable intellectual property through a demanding due diligence process. Needless to say, if any aspect of this highly sensitive undertaking is mismanaged, you run the risk of compromising your most prized assets. They could even fall into a competitor’s hands.<\/p>\n

<\/p>\n

In order to solve this all-too-common dilemma, any startup entering a Series A investment round this year needs a highly secure, cloud-based workspace designed specifically for organizing and sending the most sensitive and confidential data: a virtual data room<\/a> (VDR).<\/p>\n

<\/p>\n

In a prior era, key stakeholders or their representatives would generally travel to a physical data room and comb over sensitive documents in-person at great expense to everyone involved. Yet as online collaboration and cloud-storage tools have rapidly improved over the past five years, the virtual data room has quickly surpassed its physical precursor as the new industry standard.<\/p>\n

<\/p>\n

As IBISWorld points out, venture capital firms (along with law firms and private equity firms) are showing every indication that they will continue to “transition away from physical data rooms” in favor of VDRs within the next few years. Virtual data rooms have definitely become a critical part of the due diligence process.<\/a><\/p>\n

<\/p>\n

 <\/div>\n

<\/p>\n

The elements of a professional-grade VDR<\/h2>\n

<\/p>\n

Unlike other cloud-based solutions, virtual data rooms<\/a> differ greatly in their feature sets, not to mention their various commitments to quality and security. So let’s closely examine the key elements to look for when choosing a professional-grade VDR:<\/p>\n

<\/p>\n

 <\/div>\n

<\/p>\n

The capacity to organize and securely send hundreds of sensitive documents<\/strong><\/h3>\n

<\/p>\n

Many startups understandably focus on outward gains rather than inward organization. Yet startup fundraising at the institutional level requires a new, more rigorous mindset. The investment due diligence process in particular forces even the most successful startups to get their affairs in order, and fast. Startup founders and their teams have no choice but to quickly transform themselves, at least for a few months, from big-picture thinkers to detail-oriented, meticulous filers.<\/p>\n

<\/p>\n

In order to comply with all the requirements of a thorough investment due diligence, the startup team will need to follow strict industry-standard formats for indexing files containing their digital assets in a VDR. As daunting as this may sound, it’s entirely within reach, as long as you start early and choose an intuitive, professional-grade VDR to carry you forward. When comparing VDR solutions, look for a few organizing essentials, such as a file index feature<\/strong> that allows users with the proper permissions to reorder files in the data room for optimal sequential viewing.<\/p>\n

<\/p>\n

 <\/div>\n

<\/p>\n

Compliance and security assurances<\/strong><\/h3>\n

<\/p>\n

On a more technical front, it’s important to ensure that any VDR provider under consideration meets the highest compliance and security standards for handling sensitive data online. In particular, the VDR provider should leverage multiple data centers distributed over several continents, with redundant data copies.<\/p>\n

<\/p>\n

Furthermore, the data centers themselves should not only feature advanced biometric and keycard controls, but they should be physically guarded 24\/7. The VDR provider should also meet the following widely recognized data security standards:<\/p>\n

<\/p>\n

 <\/div>\n

<\/p>\n