How to Set Up a Virtual Data Room
It’s vital that your important documents are easily accessible to investors who are interested in your business when they conduct due diligence, whether they’re conducting an M&A, concluding a strategic partnership or seeking to raise funds for your business. Utilizing a virtual data space will help you accomplish that, while mitigating the possibility of confidential information being mishandled.
There are a few key steps to take when setting up your VDR that will make it as efficient as possible:
Keep the data contained within the VDR relevant. Information that is irrelevant will make investors confused, leading to delays and possibly putting the deal in jeopardy. To avoid this, make an index that lists all the files contained in the VDR and keep it up-to-date throughout the process. This will ensure that potential investors have access to the latest information, and that any discrepancies can be accounted for.
Create the VDR subfolders and folders logically to make it easier for users to locate and understand what they’re viewing. This will prevent confusion during due diligence and can improve the user experience and productivity.
Create an additional layer of security by making two-factor authentication mandatory to access the VDR. This will guard against hackers who leak data, but it will also keep them from exploiting loopholes or weaknesses in the security system. Additionally, you can provide an additional layer of security by enforcing stealth mode which conceals users’ activity and allows them access to the VDR without being identified.
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