Create your data room
A data room is utilized for a myriad of reasons, ranging from M&A to capital raising, divestitures, IPOs, and any other transaction that requires due diligence. Data rooms are used to store confidential data assets such as specifications for designs, product plans or marketing strategies.
It’s important to only share relevant information with your data room. It’s not a good idea to overwhelm potential investors with excessive data, which could be confusing or distract them from achieving the desired result.
Label documents and folders clearly, which makes it easier to find documents. Many VDRs also include features such as document indexing and tags to facilitate faster search and retrieval. Most VDRs allow you to update the index automatically when documents are uploaded, renamed or transferred from subfolders to parent folders.
Make sure you take the time to properly establish your data room by defining access rights and providing training materials and sessions for users. Consider adding watermarks on sensitive documents to stop unauthorized modifications to documents and leakage of data. It’s also important to set up audit trails for your data rooms to increase transparency and compliance. Don’t forget to have a non-disclosure agreement (NDA) that you have prepared for your users before they begin working with sensitive data. This will ensure your security in the event that an unauthorised disclosure occurs.