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A virtual data room, or VDR, provides users with new types of data storing capabilities. For example, it allows different companies to send and store confidential documents in a safe environment. And so, whether you are on your way to running a fundraising process for a startup or managing mergers and acquisitions (M&A) or some other formats of transactions, online data rooms will help simplify and speed up the entire working process. Read more about setting up a virtual data room in the article below.

Who Uses Online Data Room Services?

Nowadays, thousands of companies and enterprises worldwide operate with virtual data rooms. With an effective online repository, users get and send various electronic data, conduct mergers and acquisitions or other transactions concerning venture capital, etc.

Virtual data rooms are fantastic products for keeping all business information in one place via a link to a particular site for viewing, storing, and other legal purposes. Besides, online data software is also used by members of the boards of directors of various corporations to run and develop businesses in a safe environment.

Here are the most popular business fields where products from the best virtual data room providers are mainly used:

  • Attracting venture capital;
  • Mergers and acquisitions workflow;
  • Corporate documentation storage;
  • Audit process and compliance;
  • HR Department documents;
  • Fundraising process;
  • Clinical trials;
  • Licensing of intellectual property;
  • HIPAA compliance;
  • Mergers and assets.

Common Mistakes that Beginners Make when Setting up a VDR

Before starting to set up an online data room, learn about the most common mistakes newbies may accept when dealing with a VDR:

Choose and Launch an Online Data Room without a Clear Plan

It is the most popular mistake users can face when setting up electronic data rooms for their businesses. Without a clear and understandable plan, it is never easy to reach success in your work. To avoid such a wrong step, you should read a data room review to find out a clear idea of a particular software structure that you are going to work with.

Choosing a Wrong Supplier

Keep in mind that a reliable provider should have a perfect reputation. Besides, the best supplier always comes with comprehensive tools that will help you to set up and use VDR in the future. The best electronic data room vendors should offer a helpful service, which is available 24/7.

Pricing Misunderstandings

Actually, the online data room services price is associated with data storage capabilities, and so it will vary depending on the level of service a user gets and the number of functions a VDR provides. Sometimes, paying for multiple pages would be more profitable than paying for megabytes.

How to Set up a VDR if You Have no Experience?

Setting up an online data room involves some stages. And so, there are important aspects of virtual data services that you need to consider during the entire setup workflow.

Prepare an Online Data Room Index

Working with a VDR supplier is the most common way to set it up. The software maker can provide the company with some useful recommendations and samples to help them set up an electronic data room that will operate best for them. Various business fields have different needs when it comes to online data room software.

Assign the Owner of a VDR

Creating an electronic data room requires the collaboration of a team of users. And so, for the workflow to be done more efficiently, one person must be appointed as the owner of the virtual data room.

Preparation of Working Documentation

All the paper documents available to the business must be removed from digital ones. Then, the working files must be scanned and configured correctly. Scanned documentation must be set to the correct resolution. The data room supplier can often perform the reformatting process on its own. Ensuring that all files are ready to be transmitted is essential for setting up an electronic data room.

Setting Permissions when Planning

User permissions should be established at the initial stages of creating data room software. The index structure of the whole online data room depends on the permission levels assigned throughout the planning workflow. Subsequent tracking is not required if it is performed when the setup of the virtual data room starts.