A virtual data room (VDR) is an online platform that is secure to store, share and analyzing documents. They are often used for due diligence or fundraising and offer granular access permissions and version control.
Getting the most value from the benefits of a VDR requires having an understanding of the type of data you’ll be uploading and how it will be organized. Start by laying out the desired outcome, like an investment recommendation, and then begin to look backwards and determine what kinds of data might be needed for that end purpose.
You’ll want to create a comprehensive directory of all the different documents you’ll be sharing with customers, including legal documents such as articles of incorporation, shareholder agreements and intellectual property filings and operational information such as customer lists, supplier contracts and employee handbooks, plus any market research reports or analysis of competition you’ve conducted. Include any testimonials from actual customers who have had the pleasure of using your brand.
It’s also helpful to include a section for Q&A in which investors can ask questions or leave comments. This keeps the conversation in focus. It is important to select a tool with advanced features for commenting that allow you to make notes on documents that other users won’t see, and have an centralized discussion area to facilitate communication.
It is recommended to use a solution that offers an activity log, so you can track the manner in which your data is accessed and ensure everyone is adhering to the same rules regarding file handling. Consider Virtual Due Diligence Rooms using watermarks as a way to decrease the risk of document theft and accidental alteration. You can also provide training materials that are easy to use to help new users get familiar with the system.
