Today, large IT companies offer technological and organizational solutions for startups and their support. One of the most popular in the field of information technology is Data Room.
Virtual Data Room – necessary resources for the implementation of innovation processes
Innovative development is inextricably linked with the term “startup”. In the modern world and national financial and economic conditions in the creation and implementation of an innovative idea, it is important to follow a clear sequence of actions, taking into account the risks and characteristics of a particular stage of development of the idea.
The startup assumes the existence of a certain innovative business idea, which has not yet found ways to implement and requires organizational design, financing, development, and market testing. A business model is a system consisting of business components such as entrepreneurship, strategy, economics, finance, operations, competitive strategies, marketing, and company development strategies.
Accordingly, the startup assumes the presence of competencies sufficient to solve various tasks, in particular – in the beginning, it is the technical tasks, after which the operational ones are solved. One of the most important issues in this process is the confidentiality of information provided by cloud storage, such as the Virtual Data Room.
The analysis of the essence of “startups”, taking into account the theoretical and regulatory approaches to the disclosure of this term, allows us to identify the following key features of startups:
- newly created enterprise or project;
- innovation orientation;
- significant market potential;
- high risk.
The dataroom is an important aspect for every company, it is a kind of the point of contact with the audience or those moments when a potential customer comes into contact with a competitor: contracts, business cards, communication, website, and more.
The functionality of Virtual Data Room
Virtual Data Room is a wide range of solutions to automate many processes related to innovation, both in individual entrepreneurship and in the management of innovation processes of the organization. We can identify the following tasks that the online Data Room performs for automation of innovation:
- search and analysis of technological innovations;
- analysis of the novelty of a particular innovation;
- formation and support of joint activities of teams of innovative projects;
- search for potential business partners;
- search for innovation structures to support the innovation project;
- automation of construction of business plans of innovative projects;
- risk forecasting of innovative projects;
- integration and analysis of information from different sources;
- competitive intelligence;
- formation of consumer audience and promotion of innovations;
- modeling the response of socio-economic systems to innovation management, etc;
- the chain of interaction with the customer (detection, purchase of the product).
Complex evaluation of startup risks with the help of Data Room
Any startup needs some financial investment, but start-up entrepreneurs find it difficult to find sources of funding to implement new ideas in today’s economic environment and the underdeveloped infrastructure of the innovation market. The main problem of external financing of startups is that there is a high risk of non-return of funds invested in new business. For this purpose, due diligence with the use of the Data Room is performed.
Due diligence is a comprehensive audit of the company’s financial records. It allows you to assess the status of its assets, overall financial performance, and stability, as well as to identify any inconsistencies and problem areas. During this procedure, not only financial documents are checked, but all the company’s activities. That is, it is a very thorough analysis of the state of the enterprise from all sides.