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digitaldatarooms.org/what-are-the-general-benefits-of-using-a-data-room/

A virtual data room is a safe platform to share and store sensitive data. They’re often used during M&A transactions, but are also used for aiding fundraising rounds, IPOs and legal proceedings. Data rooms are a wonderful tool for facilitating these transactions. They provide granular permissions, advanced security features such as watermarking, encryption and two-factor verification.

The first step to set up a data room is establishing a planned folder structure that’s in accordance with the project that’s in progress. If you’re using a brand new tool it’s easy to upload too many documents. It’s therefore important to focus only on the most important documents. This can be achieved by organizing the folder layout around key performance indicators (KPIs) and an organized checklist of due diligence.

Once all the pieces are set, invite all the key players to the virtual data room. You should give stakeholders enough time to go through all required documents, without weighing them with too many deadlines and tasks. A good data room solution includes a suite reports that track the user’s activity, from viewing to downloading.

In addition, to these essential features, the most reliable VDRs will also offer an app that lets users to work from any device at any moment. This makes it easier for lawyers, investors, and financial teams to collaborate from their preferred locations even when they’re on moving.