For entrepreneurs, due diligence is an essential step to raising capital. In contrast to sharing files via email A virtual data room allows founders to be in total control of the information they share with investors. Folderit lets startup founders ensure that investors only receive the documents they need. The contents of a startup’s investor data room is different based on the industry, however most of them will contain documents relevant to the due diligence process. A life science firm, for instance must include information on HIPAA compliance as well as clinical test results. These documents are typically too large to be sent via email. A virtual data room is the best way to share these documents with investors. Investors perform due read this diligence in order to assess a startup’s potential and reduce their risk. Having all the information they need in one place speeds up the process and makes it easier for them to make a choice. It also indicates that the founders are taking their investors’ time seriously, which is crucial for the majority of backers. Due to the fact that investors have limited budgets, it’s essential that startups choose a provider who offers a flat-fee structure. Startups who are still fundraising benefit from the per-page pricing offered for documents that are text-based that are much less costly than a subscription-based system with unlimited storage space and users. Also, a trial period for free is a great opportunity for startup founders to try their platform, practice reenacting presentations with investors, and sketch out their document’s organization layouts.