Virtual data rooms (VDRs) have become essential for startups looking to raise capital. They provide a secure and efficient way to share sensitive documents with investors, making the fundraising process much faster and more efficient. VDRs are a dream to get deals over the line.
This guide will help you choose the best VDR for your startup. We’ll explore the essential features to look out for, as well as the benefits of using a VDR from DocSend—a leading provider that over 10,000 companies use every day, including many startups looking to enhance fundraising efforts.
To get deals done quicker, DocSend offers a free trial, so you can start using it right away to see how it can benefit your startup. Start a free trial now and see how it’s ideal for any startup.
7 essential VDR features for startups
It’s long been known that around 90% of startups fail. This makes it even more crucial you use a tool that’s going to proactively guide your pitch over the line and secure that precious funding.
When choosing a VDR that’s just right for a startup, there are a few essential features to look for:
1. eSignatures
eSignatures simplify the signing process when getting funding, making it quicker, more efficient, and more secure. DocSend lets you securely add legally binding eSignatures, reducing the need for physical paperwork.
As fundraising involves multiple parties, eSignatures can optimize the process. You can add up to ten signatures to a file in DocSend so you can easily get approvals during every step of the process
2. Document analytics
Document analytics track file views, engagement, and time spent on each page—perfect for the inside scoop on what’s turning heads in an investment document or pitch deck.
This is an example of how a VDR can actually refine your processes and teach you things for future fundraising rounds, as you can adjust messaging or shift your focus based on what works.
Using DocSend for your document analytics provides insights into investor interest and helps tailor follow-up actions, resulting in better, more data-driven decision-making for a startup.
3. One-click NDAs
One-click NDAs simplify the process of adding legal protection to documents and give you an extra layer of security against any disclosures. It’s the perfect feature for a startup during critical deal stages when confidentiality is paramount.
Info getting out in the investment environment can seriously jeopardize prospects (and your reputation) so convenient, legally-binding NDAs are an important DocSend feature for many startups. Why take the risk? Especially if it takes just a single click to secure your documents.
NDAs ensure confidentiality by quickly and easily protecting sensitive information, helping to meet compliance standards, and providing greater peace of mind for all parties.
4. User permissions and access controls
User permissions and access controls give admins complete mastery over who can view, download, or edit documents. This helps maintain strict control over VDR access, ensuring data security while fundraising, and allowing you to provide access to relevant parties only.
DocSend permissions are flexible and let you easily add, remove, or adjust access levels to individuals or groups. This makes it a top feature for startups going through complex deals or pursuing investment opportunities that involve several stages.
5. Secure file sharing
Secure file sharing provides a completely safe but extremely convenient way to share documents with investors and stakeholders quickly, anywhere with an internet connection.
In DocSend, you can share any file using a secure link, and you can also add a time limit or password to it for extra protection. Safe, convenient sharing is excellent for startups when you need to work hard without ever slowing down, as you can share in a few clicks without ever compromising security.
Perfect for time-critical decisions, this feature will automatically protect sensitive data from unauthorized access and breaches—while boosting collaboration and improving productivity.
6. Scalable options and flexible pricing
Choosing a VDR with several plan options and flexible pricing means you can drive up its capabilities with the startup’s progress. This avoids unnecessary costs and gives you everything you might need at your fingertips.
Do you have a huge deal that requires more VDR users or extra features? Scalable options mean you can simply pick the most appropriate plan for your current needs and make it happen—it’s key to the agility that startups need to succeed.
DocSend has several plans and flexible pricing options available, which ensures your VDR can handle increasing volumes of data, users, or additional features as your startup expands.
7. Intuitive interfaces
Intuitive interfaces aren’t just pretty. They’re an essential VDR feature for startups, as many people from IT admins to founders might be using it and working on a deal in tandem. They ensure ease of use for all stakeholders and make it easy to train new employees or existing staff effectively.
An easy-to-use tool minimizes training time and expense while maximizing efficiency, removing the chances of error, and reducing the learning curve.
DocSend offers numerous learning resources and an intuitive interface that minimizes learning curves. Additionally, the flexible pricing options and free trial can help startups manage costs.
DocSend data rooms include all the above features, and many customers in the startup field experience rapid growth by using this powerful tool to improve fundraising outcomes.
Checklist of what to include in a startup data room for investors
In addition to the essential features we list above, there are a few other essential things you should include in your startup data room to get the result you want:
- Profit and loss statements, balance sheets, cash flow statements
- Detailed description of the business model, market analysis, and growth strategy
- Articles of incorporation, licenses, patents, or other legal documents
- Bios and resumes of executives, founders, major shareholders, and key personnel
- Details on product descriptions, prototypes, patents, and market research
- Pitch decks outlining the business opportunity, market, and financial projections
For more information, check out our related blog posts on the due diligence checklist and the post-funding checklist for startups, which contain more helpful information and advice.
FAQs on virtual data rooms for startups
Here are our answers to a few frequently asked questions about VDRs for startups:
What is the cost of a startup VDR?
Startup VDR pricing can vary depending on the provider and the features you need. DocSend offers a variety of plans, and you can start a free trial to help mitigate costs too.
How do I create a VDR for a startup?
Creating a VDR for a startup is as easy as creating a folder on your computer. Simply sign up for a free trial with DocSend and start uploading your documents.
What is the purpose of a VDR?
Usually, a VDR works like a secure online space for storing and sharing sensitive documents—like a locked filing cabinet, but accessible digitally. It allows you to control who has access to your documents and track how they’re used, which can help during complex transactions such as M&A or startup fundraising.
What are the disadvantages of using a VDR for a startup?
There are no significant disadvantages to using a VDR as a startup. However, it’s important to choose a VDR provider that’s reputable, has a product with proven success in the startup world, and offers the features you need.
Try DocSend for free in your startup
DocSend is the best virtual data room for startups. It offers features that get investment deals over the line faster, including easy eSignatures, insightful document analytics, and simple one-click NDAs.
With powerful sharing features, secure messaging, and real-time alerts, DocSend also fosters collaboration to make all kinds of confidential projects (or other startup work) smoother. Start your free trial to experience the benefits of a top VDR for startups firsthand.
