When you’re trying to negotiate an M&A deal, establish a strategic partnership or raise money for your startup, it’s essential that all your vital documents are readily accessible to potential investors during due diligence. A virtual data room allows you to accomplish this while reducing the risk that confidential information will fall into the wrong hands.

When setting up your VDR, there are some steps you should follow to make it as efficient as possible.

Keep the data contained within the VDR relevant. Including irrelevant information will only confuse potential investors which can lead to delays and possibly destroying the deal completely. Create an index of all the documents in the VDR and maintain it through the entire process to prevent this. This will ensure that potential investors have access to the most up-to-date information and that any differences can be accounted for.

Structure the VDR folders so that users can easily locate and understand what’s being viewed. This will help to prevent confusion during the due diligence process, and can improve the user experience and productivity.

Add a second layer of security to the VDR by the requirement of two-factor verification. This will prevent hackers from leaking information, but it will also keep them from exploiting loopholes and weaknesses in the security system. Additionally, you can add an additional layer of protection by enforcing stealth mode, which hides the activity of users and allows them to access the VDR without being detected.