Setting up your data room is a vital step to ensure the success of your project. The most important elements to think about are the user interface, the limitations on file size and type as well as the storage. Also, be sure to check out the auditability and compliance features of the service. Compliance features can reduce the risk of fines as well as legal actions, and even the closing of your company.
The way the data room is organized and indexed is another aspect to consider. The way files are organized, identified and in what format they are uploaded will have a major impact on the ease with which they can later be found. For example, separating text documents into PDF format, and financial documents into Excel will make it easier to view and manipulating the files. It is also beneficial to include the date of upload along with other relevant information in the name of a file or folder.
Keeping an updated data room will save you and your investors time, particularly in the event of due diligence or a possible deal. It will also show that you are taking investor communication integrity, transparency and trust seriously.
When choosing a provider ensure that the platform has granular permissions settings that allow you to control which files users can view and download. Also, make sure that your service can encrypt files in both storage and transmission, which will add to the security of your project. Other security features include a timeout feature that is adjustable and shuts down a user’s session following the specified time, if the user fails to log out. Multi-factor authentication is another feature that will increase security.