If you’re planning to make an M&A deal, establish an alliance or strategic partnership, or even raise money for your startup, it’s essential that all of your critical documents are readily accessible to potential investors during due diligence. A virtual data room enables you to accomplish this while minimizing the risk that confidential information will be accessed by the wrong people.
When setting up your VDR, there are some steps you must follow to ensure that it is as efficient as it can be.
Keep the information in the VDR up-to-date. Including irrelevant information will only confuse investors which can lead to delays and possibly destroying the deal completely. To avoid this, you should create an index that lists all documents in the VDR and maintain it throughout the process. This will ensure that the most accurate information is always available prospective investors and that any differences are taken into account.
The organization of the VDR subfolders and folders logically to make it easier for users to locate and understand what they’re viewing. This can prevent confusion when conducting due diligence, and will increase the satisfaction of the user and productivity.
Add a layer of security to the VDR by insisting on two-factor authentication. This will not only guard against data leaks from hackers, but also deter them from taking advantage of vulnerabilities in the system and exploiting any weaknesses in the security infrastructure. Additionally, you can add an additional layer of protection by enforcing stealth modes that conceals users’ activities and allows them to access the VDR without being recognized.