How VDR can ensure investors searching process efficiency?

Many entrepreneurs are faced with a choice: grow a business using personal resources or attract third-party capital in order to scale faster. Check how VDR can ensure investors’ searching process efficiency in the article below.

How to Attract Investment in Business?

Often, investments are needed at the initial stages of project development – when they are directed to the development of a prototype or the launch of the first sales. Due to increased uncertainty and risks, banks refuse to lend to such startups or do it on the security of personal property. Then the businessman faces the question of raising capital from private investors and investment funds.

Following the logic, the entire investment analysis should be divided into three consecutive blocks:

  • Establishing the investment needs of the project.
  • Selection and search of sources of financing and determination of the cost of attracted capital.
  • Forecast of financial returns from an investment project in the form of cash flows and evaluation of the effectiveness of an investment project by comparing the predicted cash flows with the initial investment volume.

Evaluating the effectiveness of investments involves conducting a variety of financial and economic calculations using special formulas. They are associated with the flow of money in different time periods. An important role is played by an expert assessment of changes in the value of money over time. The analysis helps to determine the investment attractiveness of the design solution. The expert assessment is objective; therefore, experts are invited to determine the economic feasibility of the plan. They apply the necessary methods, taking into account the type and characteristics of the investment.

Ensure Investors Searching Process Efficiency with the VDR

So what is a virtual data room? You may read more about data room to learn this is an Internet site, usually created for a specific period and for a specific purpose, which provides authorized users with access to a secure database of documents in accordance with their access rights. In reliable providers, component redundancy is used, but it is also important to pay attention to the parameters of the data center.

In the virtual data room, information is stored on numerous servers in different parts of the world. If employees’ work computers are damaged by a virus or even physically destroyed by fire or water due to force majeure, data remains safe and accessible from other devices. Every bit of data is copied multiple times, so even the loss of a few cloud storage servers cannot erase it from the virtual room.

Virtual data room solutions for investors perfectly manage data leaks and prevent malicious hacking attacks. Attackers have to deal with a large number of data room security lines:

  1. Firstly, it is very difficult to forge a certificate to gain access.
  2. If they invade the virtual data room, they can be easily tracked and stopped by the data room software or an administrator.
  3. They cannot access everything, only one or more data clusters.

The launch of a virtual data room should facilitate the access of investor’s searching process to potential buyers to information about the assets of banks in liquidation put up for sale. A complete package of documents for lots, including data containing bank secrets, will be posted on a special resource. The virtual data room will be loaded with scanned materials of credit cases with the borrower’s name, all the information about the completed litigation and claims work, as well as the borrower’s financial statements.

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