Determine your requirements go to the website for storage of data before you start setting up a space. The next step is to determine if a virtual or physical data room is best for your business. Select a provider with the features you need to meet your specific requirements for user access, such as access to users, drag-and-drop, watermarking, and audit trails.
Once your data room is created, you are able to begin organizing your files. Make sure your files are organized using the use of a table, or a folder structure to allow users to find the information they’re seeking. Utilize a clear and concise indexing system. A well-organized structure for your documents lets you easily track and compare versions of a document, which is especially useful when working with multiple collaborators.
You should consider including any prior updates from investors in your data room if you are using it to share information with investors. This will show investors you are open to transparency and communication which can increase your trustworthiness in the due diligence process.
Finally, if you are using your data room for due diligence or to raise capital, be sure to follow a due diligence checklist which will assist you in preparing for the review by the buyer and protect sensitive information from getting in the in the wrong hands. It is also essential to establish a non-disclosure agreement (NDA) in the data room, and have the potential buyers sign it prior to examining any documents. This will lower the risk of intellectual property theft and data breaches that can happen when sensitive information is shared through unsecure methods such as email or file sharing sites.