VDR Solutions: Key to Next-Level Investor Engagement

Companies are increasingly collecting, storing and using data. And maintain peak response rates across the entire process of investor engagement. The post below explores how VDR solutions revolutionize investor engagement, enhancing communication and collaboration.

Enhancing Investor Communication with VDR

Investor relations activities began to develop with the increase in the flow of foreign direct investment, as well as through the processes of privatization and globalization. To attract these resources, countries first took measures to create a more favorable environment for investors, focused on such political and economic factors, as well as on the business climate.

To build a successful Investor Communication, the company must be responsible for its words, even if it contradicts the wishes of a particular investor. A well-developed company tries to maintain good relationships with everyone but always focuses on long-term value.

Building a relationship with an investor takes time, and you need to strengthen it before you need their support. We are convinced that the key to trust is VDR Engagement. A large number of organizations optimize their business processes through the use of virtual data spaces, environments in which they store documents and securely exchange files with employees and contractors.

So what is a virtual data room and how to implement it? This storage allows you to differentiate the rights of participants and set different levels of access to documents. There are currently a significant number of companies offering Collaboration Tools on the market. The virtual data room ensures the highest level of security when working with documents containing sensitive information. The solution is unique because it protects data, including from screen photography and/or leakage through printed copies.

The virtual data room for investors allows you to download large amounts of information and subsequently provide limited access to it to trusted persons. The work in it looks like this:

    1. The necessary documents are loaded into the system.
    2. The authorized person is given a login and password to access the system.
    3. The user sees only those documents that are intended for him; access to all other folders is denied.
    4. The used account is either disabled by the administrator’s decision or retained (if the user is allowed repeated access to documents).

VDR Features for Investor Relations

The necessity of forming relations with investors in enterprises is very great today. Many enterprises are in need of restructuring and development, but their own resources are insufficient, the investment potential of the population is still limited by the low level of savings, and government subsidies for enterprises are no longer in the form they were before the market reforms. However, it is appropriate to consider how different stages of a company’s development and User Experience may require different types of external financing.

Among key functionalities that users want in a virtual data room for successful Investor Relations are the following:

      • ease of loading files into the system and sorting them into folders;
      • clear functionality for downloading documents and viewing them in the system;
      • creating joint work areas and assigning multi-level roles for participants;
      • enhancing user experience and engagement;
      • differentiation of access rights to documents and restriction of a number of actions with documents (for example, a ban on printing or downloading from space);
      • the ability to share files and folders with colleagues or contractors using generated links with the establishment of various restrictions (for example, the validity period of the link);
      • user-friendly interface.

At the same time, the security of such virtual environments, ensured by the technical characteristics of VDR Features, is also important for heads of information security departments. Among other things, it is important for them to have tools that allow them to moderate user actions within the system and upload, for example, activity logs.

Case Studies: VDR Success Stories

Modern virtual data rooms are powered by an Investment Engagement algorithm that automatically converts every document into a new, personalized copy every time the document is opened. Thus, all users work with their own unique copy, which does not contain special characters, any marks or other artifacts that would be noticeable and eliminated by an attacker, but each line, each element of the document contains information about who and when it was received this particular copy of the document.

When choosing the virtual data room solutions, make sure you have the following options:

      • Improve data quality with validation, cleaning, and enrichment tools.
      • Collect and analyze data using discovery, profiling and benchmarking tools.
      • Set up data tracking integration with full data lineage.
      • Capture data in documentation to improve relevance, searchability, accessibility, etc.
      • Continuous review and tracking of data.
      • Empower employees to explore data.

Besides, there are many Case Studies that illustrate how VDR solutions have effectively engaged investors and improved business outcomes. In one notable example, Pfizer and AstraZeneca utilized a VDR to facilitate their collaboration in the fight against COVID-19. The two companies shared critical information related to vaccine development, clinical trial data, and manufacturing processes within a secure VDR environment. This enabled them to maintain confidentiality while still collaborating effectively in a time-sensitive manner.

According to numerous Success Stories, virtual rooms allow users to work with documents comfortably and safely and exchange files in a leak-proof manner. Information becomes especially vulnerable after being displayed on a screen or printed – an attacker can photograph the screen, make a printed or scanned copy of a paper document and distribute it. DLP, DRM and IRM products do not solve the problem of such leaks, and strict control and supervision systems become burdensome for partners and employees.