What Is an Investor Dataroom


Nowadays no enterprise, corporation, a government agency can do without the use of a secure information base like a Virtual Data Room. Here is more about the role of software for investors.

The concept of investor Data Room

The strategy is a very important area of investor relations that is often referred to as financial communication. It is an important branch of corporate communication that provides investors, financial media, and analysts with relevant information and thus makes an important contribution to maintaining contacts. The assignment to corporate communication is obvious, as the groups in question are addressed with goal-oriented information.

Due to the different backgrounds and levels of knowledge, measures and information in the area of investor relations must be geared towards the target group. In this respect, Virtual Data Room can make an innovative contribution to the goal-oriented modernization of the entire investor relations. So, what is an investor Data Room?

Investors who have to make an investment decision want to find out as much information as possible to be able to realistically assess existing opportunities and risks. With Data Room companies ensure at all times that the financial community is provided with all important information confidentially and securely. The double authentication for each user login ensures the highest level of desirable security.

The central part of the investment documentation is the investment agreement, which regulates details of the investor’s participation and the main conditions of the investment. Once the list of requirements has been processed and the data room has been equipped, the investor checks the documents together with his advisors.

Investor Data Room for highly effective financial communication

The choice of Data Room provider depends on the number of documents that are submitted. In addition, the costs of the data room provider and the issue of “security” are also important, whereby we observe that all providers take the latter issue very seriously and have brought it to a high level. To find the best solution, we need to consider basic criteria and features:

  • User-friendly interface

With the intuitively usable interface of the software, effective and trust-building financial communication becomes a daily reality. The information that can be controlled in this way ensures a high level of traceability and materiality. Furthermore, companies can professionalize expectation management. A browser and an internet connection are completely sufficient for an innovative form of investor relations.

  • Security

Thanks to the very high level of security in the Virtual Data Room, companies can make relevant documents available so flexibly that they are protected from external access. As far as the assignment of rights in the Data Room is concerned, this can be regulated individually. In this sense, it can be determined which person or group of people is given which rights. Individual access rights for displaying, downloading, and editing data can be set up for different internal and external user groups.

  • Customer support

Companies that want to professionalize their investor relations in the long term with the Data Room can rely on comprehensive and individual service. Its core is solution-oriented support, which is available at all times. Companies enjoy the certainty that inquiries are answered quickly and convincingly.

  • File-sharing for collaboration

 Data Room includes its robust file and folder sharing system. To work together on projects, the service can create “Shared” folders for public access of people who have different accounts on the service. Automatic synchronization of files and folders is available.