How to choose the best data room for fundraising meetings?

Choosing the best support tool for your business is not as easy as it seems at first glance. We decided to help you with this and compiled a small checklist of important factors that you should pay attention to when choosing a data room for fundraising meetings.

The role of a digital data room for fundraising

In addition to using virtual data rooms for due diligence in M&A transactions, IPOs, or commercial real estate sales, virtual data rooms are also used for asset documentation throughout the life cycle. This enables the management of a complete portfolio from a single source.

Fundraising is a very important process in the investment market. The productivity of such activity depends on how well organized and executed it is. Having agreed on a term sheet, the potential investor will want to regularly start due diligence on the legal, financial, tax, and commercial aspects of the start-up. If the term sheet does not already contain a binding confidentiality agreement, founders should insist on the conclusion of one before submitting the due diligence documents. It is a complex and time-wasting procedure.

According to, to simplify this procedure and make it more transparent, most companies use virtual data room software (VDR) as a secure collaborative tool. The software is used for various purposes including data storage, document exchange, file sharing, financial transactions, legal transactions, and many more.

How to choose the data room solution for fundraising meetings?

The list of basic points that should be considered when choosing the best data room vendor for fundraising meetings includes the following aspects:

  • Functionality

The more diverse and complex business processes in your company, the more complex tasks should be solved by the data room. But most importantly, it covers the daily needs of your colleagues. The logic here is simple: the more often they perform a certain routine operation, the more important it is to automate and control this operation.

  • Sales pipeline setup and analysis

The pipeline should be configured in different sections: analysis of transactions by new and current customers, by the target audience, by region, by product. Be sure to track the length of sales pipelines, the length of the stages in all funnels, as well as all types of conversions.

  • Data security

This is one of the most important factors. You must be sure of the security of your data and the data of your customer base. This will allow you to conduct business calmly while maintaining good relationships with customers. When collecting information about a particular data room, be sure to consider this question – how the system is protected from spyware and hacker attacks, how often backups are made, etc.

  • The convenience of use

Both you and your team should be able to easily figure out how to use the tools. If everything is too complicated, the staff will be reluctant to work in the system, and some part of the information will not be recorded there, which in turn may have a bad effect on the level of sales. The site of every self-respecting data room system should have a video review of its interface and main functions. It is also recommended to try the free version of the system. So you will immediately understand how it suits you.

  • Price

For many, this is the main selection criterion. There are both paid and free VDRs. The free ones are mostly limited in functionality and have a minimal number of users available. Paid ones have a large number of useful tools and often provide an unlimited number of users.