If you're on your way to series A funding, then you already know that it's time to think hard about the all-important investment due diligence process that's in store. You probably also know that institutional investors expect to have access to an enterprise-grade virtual data room (VDR) to securely review key documentation and intellectual property before sealing the deal.
In this post, we will try to answer some of the biggest, recurring questions about startup funding. Plus, share stats, insights, and best practices to help you in raising funds for your startup.
As of April, 2018, the startup investment market is stronger than it's been in years. Yet as you may have already learned the hard way, startup fundraising is a relentless challenge in any market. Nonetheless, there are tried and true ways to prepare yourself.
How important is PDF and document security to your company?
There are many examples where you should ensure that your important documents are protected. At the same time, you need to be able to share those documents with people who need to review them.
The consequences of security breaches can be disastrous for companies. Sensitive information can help competitors to gain an edge, or leaks of confidential data can do serious reputational damage, or fines in the case of compliance frameworks such as HIPAA and GDPR. Companies need to consider the potential legal ramifications of data leaks, including misuse of their intellectual property.
Do you know what happens after you send a PDF file or a document? Can you state with certainty who has viewed your PDF files? What about when and how often documents are being opened, and from where?
The fact is, most of the time control is lost once a file has been sent out. There is no easy way to keep track of it and realistically, it could end up spread much further than you intended.
PDF file and document tracking solutions help you to understand the movement of your documents and potentially, whether they are spread beyond your intended audience. You can get an understanding of whether your documents might have been compromised, and you may even be able to do something about it, particularly if you use it in conjunction with other document security features.
Let’s take a closer look:
If you're going to raise venture capital for your startup, it's important that you complete your investment due diligence on the topic. Understanding the important must-knows of Series A round will help you more effectively reach your financing goals and ensure that you're able to provide the information needed by your investors.
At this point, you’re already organizing your virtual data room for all the fundraising and due diligence documents. Before you dive into your investment goals, however, it's critical that you understand these key tips.
Have you ever had documents that you need to share, but don’t want to give permanent access to? This commonly crops up in businesses where sensitive information is required to be shared.
Fortunately, it is possible to give temporary access to files, meaning that recipients get a short window of time in which to review them. Examples of when you might like to restrict access include:
Did you know that watermarking is one of the earliest forms of document security?
Some of the first known examples are thought to trace back to paper makers in Fabriano, Italy, where in 1282 a Greek cross with circles was embossed on the paper. These early watermarks often had some kind of religious significance, but Renaissance paper houses soon recognized that they could act as a kind of trademark for their businesses.
Today, we still watermark our documents, whether they are physical or digital, in an effort to identify the document owner, classify the document or maintain some level of traceability. There are various ways of watermarking a document, ranging from a discreet mark to very obvious markings. These watermarks might be as simple as a single word, or include more detailed information such as the name and email address of the document recipient.
How secure is your data really? When you send a PDF file, how do you know the file is secure?
This is where password protection is often one of the first things people think of when considering “document security.” Protecting a PDF file with a password is one of the most basic ways to ensure that a sent file is protected.
Find out how to choose a virtual data room that sets you up for a successful investment due diligence process.
If you're seeking Series A funding, you've already reached a major milestone. According to a recent study, far less than half of startups that successfully raise Seed/Angel funding ever reach the Series A stage.
We use PDF files and documents for many different reasons. Sometimes, these files could be “sensitive” or “confidential” in nature. Understanding what you can do with digital rights management (DRM) is an important step to secure your important information.
Today, anyone can forward PDF files and documents with ease. Without a digital rights management system in place, it is too easy for information to be forwarded, copied, printed or downloaded.