When pitching to VC secure communications with VDR

For any company seeking funding from a Venture Capitalist, a pitch deck and supporting materials are most important. In order to separate your business from that of your competitors and attract interest of the VCs, these materials may need to disclose certain very sensitive business information and facts that generally need to be kept very secret and stay out of the hands of the general public. 

This is where a secure virtual data room plays a very important part. A reputed Virtual Deal Room like the DocullyVDR can be used to protect the pitch materials, allowing venture capital and your company to communicate, negotiate and share information securely.

Your Pitch Needs Protection

Entrepreneurs go into business because they have an idea they want to share with the world.  But there are trade secrets or otherwise sensitive data or other many moving parts to the business itself, including hundreds of documents that need to be articulated and placed before the investors.

But this is very sensitive information that is very essential to the health of your business and must be shared to the right people only. A secure VDR like DocullyVDR can help maintain that health and integrity of your business.

Transparency is a must and it is inevitable

In a funding deal your VC needs to know all the details of your business as without this transparency, they won’t invest in your company. So you can’t keep trade secrets from your investors. Investors need to know all the concrete details of your company and its methods. In this situation, a secured file sharing platform like a DocullyVDR is invaluable. It allows your business to protect its trade secrets without holding back those details from investors in a way that could damage your pitch. A secure deal room also helps back up a non-disclosure agreement: It provides an added layer of protection, and communicates that your company takes its most valuable innovations and business sensitive data seriously.

Protecting Your Pitch Deck(s)

Two versions of your pitch deck can prove useful and necessary during the pitch process, and at least one may need the additional protection of a secure virtual data room.

The first version that is used for presentations, should be sparse on the details, requiring investors to listen to you explain the idea instead of simply reading slides. The second version should contain more detail for investors and it contains information that can’t be released to the general public. 

Most entrepreneurs turn to a virtual data room during the venture capital stage in order to secure vital information. Managed effectively, however, your VDR can also help build relationships with investors by organizing information and supporting a more engaging pitch. 

Keeping Information Organized

A typical due diligence process when seeking venture capital investment may involves hundreds of files in dozens of different categories. An organized virtual data room ensures that all the necessary information is in place, well organized and easily traceable and accessible as and when required. It permits easier addition and amending of information, because all the data is stored in a single, secure location that authorized users can access whether or not they’re in the office. 

By compiling all the necessary information in one place, a secure VDR helps both entrepreneurs and venture capital participants better understand key financial details. The process of placing financial information under the VDR’s protection helps entrepreneurs gather their sources and cite them effectively in a pitch deck and other documents. It also makes those sources readily available for investors to review. Keeping data organized allows you to lay your hands on precisely the right fact, detail or anecdote to underscore an emotional point. Using a VDR for organization from the start can save time and help entrepreneurs have exactly the facts they need when they’re needed, no matter where they are. 

Making Your Story Interesting

The best investor pitches focus on telling a cohesive, inspiring story backed by clear, objective facts. A VDR can be an invaluable tool for the detailed, fact-based phase of this storytelling operation. By using a VDR’s file-organizing and other tools effectively, entrepreneurs can show investors their vision rather than reciting it. This can include who you are, where the business came from and how you’re going about solving targeted problems.

Choosing the Right VDR for Your VC Pitch is of utmost importance.

In addition to your core needs, look at features that support a more effective pitch, such as the ability to create a branded experience or track investor activity within the virtual deal room.The right pitch offers an engaging experience for investors and gets them involved, prompts questions and encourages buy-in to your ideas. The right virtual data room can extend and further enhance investor engagement with the pitch and corresponding due diligence process. For example, VDRs that offer the option to import your custom logos, colors and design elements create a unique branded virtual space, giving investors the sense that they’ve entered into someplace special whenever they log in. 

Monitoring VDR User Activity

Many VDRs allow their administrators to track use of the virtual data room. Every time someone logs in, the VDR tracks which user logged in, which files they viewed, and how much time they spent on each. By examining these records, entrepreneurs can develop a sense of where investor curiosity or concerns are focused. They gain an additional layer of information that can help them respond to investor questions more thoroughly. 

With the right VDR, a company can build a more cohesive, organized pitch for venture capital funding. A virtual data room’s security and ability to keep all necessary information in one place makes it ideal as a virtual site for hosting VC research and negotiations.