It is essential that your crucial documents are easily accessible to investors who are interested in your business when they conduct due diligence, whether they’re conducting an M&A, closing a strategic partnership or raising funds for your business. A virtual data room will allow you to accomplish this while reducing the chance of confidential information getting into the wrong hands.

There are a few important steps to follow when setting up your VDR that will make it as efficient as it can be:

Make sure the information contained in the VDR relevant. Don’t include irrelevant information that could confuse potential investors and cause delays, or even end the deal. To avoid this, make an index which lists all files in the VDR and maintain it throughout the process. This will ensure that prospective investors have access to the most current information and that any differences can be traced.

Structure the VDR folders and subfolders logically to make it easier for users to locate and understand what they’re looking at. This will help to prevent confusion during the due diligence process, and will also increase satisfaction of users and efficiency.

Create an additional layer of security by making two-factor authentication mandatory to access the VDR. This will help protect against hackers who leak information, but it will also keep them from exploiting loopholes or weaknesses in the security system. You can this article also add an additional layer of security by implementing stealth mode, which hides users’ activities, and grants them access to the VDR without detection.