How to Set Up a Data Room Right

A data room is a crucial tool in a variety of business situations that require secure and professional document sharing. It can be used to facilitate M&A transactions or fundings, legal proceedings, IPOs or other projects requiring due diligence with external parties. To make your virtual dataroom as useful as possible in these scenarios it is essential to invest the time to set it up correctly.

It is essential to decide in the beginning who will be able to access your documents, and how they’ll utilize them. It is crucial to limit the number users, as you don’t need to let anyone access your documents. In addition, too many users could be problematic, so you must strike the optimal balance.

It is then necessary to create a hierarchy of folders that makes it simple for users to locate information. It’s as simple as establishing consistent and clear folder names, or adding detailed metadata to each document. Keep in mind that certain details could only be relevant for specific individuals. This is why it is important to group files together.

After you have completed the structure of the data room, it is time to upload the actual files. Most platforms let you set permissions that allow you to grant different people access to different files. For instance, you can grant certain investors access to only view rights while providing full access to others. You can also control downloads so that third parties don’t steal your precious data.