In the last decade, we are dealing with a start-up boom in the world, which also reached the Central and Eastern Europe region. In recent years, CEE region has been building its position step by step in the world of startups, Venture Capital funds and generations of modern entrepreneurs who are trying to build a global unicorn.
The life of a start-up is not only about working on an idea and its commercialization, but also a constant struggle to ensure financing for the company's operation in subsequent stages of development. The so-called fundraising is a tedious and usually labor-intensive process, which in the end may translate into ensuring financing and liquidity in the development of a young company.
Each process related to obtaining financing should be well prepared and carried out in the most professional way. In addition to a well-thought-out presentation concept, the so-called pitch-deck, it is worth preparing the process and the way of communication with investors. More and more investors interested in start-ups are professional entities, used to proper business communication. Institutional investors such as Venture Capital funds, private money accumulated in the so-called Family Offices, or more and more often business angels associated in associations, expect professional communication during the process, based on the best market practices and appropriate tools supporting the process of raising capital.
As suppliers of the Virtual Data Room SECUDO solution, we often hear from start-ups or Venture Capital funds that the process of raising capital most often takes place via e-mails or cloud tools such as Google Drive or Dropbox. Many VDR providers have already described the differences between these solutions on the pages of the Internet and we will not write about them here. However, it is worth presenting a few important aspects of VDR that may be crucial when deciding on the use of such a solution by start-ups.
1. The transaction process in Virtual Data Room is the best market practice
Do you want to show yourself to professional Venture Capital funds? Most of them, especially those from the USA or Western Europe, cannot imagine the transaction process in any form other than in the Virtual Data Room. Take care of your company's image and start the process of raising capital in accordance with the best market practice. Show that you are a professional and set up a trading process in a place where investors feel like fish in the water. VDR is a place where M&A, IPO, crowdfunding or bond issues are prepared.
2. The entire process is safely carried out in one place, under full control and in full confidentiality
A start-up is often an innovative, ground-breaking idea or technology that is the company's core value. The so-called trade secrets or intellectual values ​​are company secrets and are often the company's most guarded asset. If you want to show investors your idea or technology, it's worth taking care of it in a safe way. A professional Virtual Data Room gives the possibility of appropriate securing and encrypting documents, granting multi-level permissions for different users and differentiating access to documents for individual investors. Everything takes place in one place, under full control and with 24/7 access from anywhere in the world, where we have access to the Internet.
3. Efficient and faster process using VDR
If you run a transaction process related to acquiring an investor, you want to know what motivation each invited investor has. By conducting the process in VDR, you have the opportunity to analyze the activity of each of the investors. You will see which investor is most involved in the review of shared documents, what documents he / she most often reviews, whether advisors were involved in the process, what questions investors ask and what they pay attention to. All this means that you can conduct the trading process faster, more efficiently and with a higher probability of success.
4. Low costs associated with the use of VDR
Initially, Virtual Data Room services were relatively expensive and concerned large transactions carried out on the M&A market or on the capital market. With the popularization of cloud technologies, VDR services are much more available, and the costs of using VDR in the transaction process are relatively low, even with raising capital of several million zlotys. Virtual Data Room SECUDO's pricing plans start below EUR 100 per month and are designed to accommodate a small or medium transaction transaction process. The current VDR SECUDO price list can be found on our website at the link: https://www.secudosolutions.com/cennik.
5. Virtual Data Room is a product that is constantly evolving to meet the expectations of users
The first Virtual Data Rooms were very simple and had limited functionalities. Today, more and more often, VDR is an advanced tool that is to support the transaction and decision-making process at every stage. Virtual Data Room SECUDO as a proprietary solution has been constantly developed by DealDone for several years. In 2020, DealDone signed an agreement with the National Center for Research and Development for the further development of VDR SECUDO as part of the research and development project "SHARE - an encrypted platform for virtual workspaces." In the coming months, we will introduce innovative functionalities to VDR SECUDO, such as: a durable medium in blockchain technology, an additional workflow with an electronic signature, the possibility of organizing videoconferences in VDR and a number of facilities in the field of project management.
Summary
Start-ups, including those in Poland, obtain more and more funding as part of subsequent rounds and engage more and more investors. Transaction processes often involve many investors, advisers and are conducted in different geographies and in different languages. Virtual Data Room is a professional tool for conducting the transaction process and the related due diligence process. It ensures security, speed and transparency of the process, increasing the probability of successful completion of the transaction. It is also a good market practice among institutional investors such as Venture Capital funds. It is a solution proven on financial markets and affordable even for relatively small transactions.
About us
DealDone is a specialized company that offers high-quality products in the field of data information security. We offer services and software in the field of modern technologies for the circulation of confidential information, classified information, sensitive data and digitization, security, encryption and sharing of data and documents inside and outside the organization.
DealDone independently developed and introduced for sale the Virtual Data Room SECUDO system. VDR SECUDO is a platform for secure exchange and processing of confidential information offered in the Software-as-a-Service model for business clients, in the form of virtual data rooms.
