Setting Up Your Data Room: Full Guide

In 2020, the virtual data room market was estimated at $690 million, and it’s expected to reach $1.6 trillion by 2026. The growing adoption of cloud storage puts an end to physical storage use and reduces paperwork. 

Today, businesses can store their sensitive data in one place and securely share documents with third parties. If your organization is also going to employ this tool, read the guide on how to set up a virtual data room.

1. Arrange your files

Setting up a data room starts with preparing the documents you want to upload and share. First, you need to digitize your hard copies, so scan your corporate records and organize them in the most convenient way. To order your electronic materials easily, you can use a file management system. Note that the more organized your VDR is, the easier it will be to manage materials.

Next, check your data for correctness to avoid causing snags down the line. Finally, consult with executives or legal advisors about the scope of information stored in your virtual data room. This way, unauthorized users won’t be able to view or share confidential content.

2. Choose a provider

Before you select a VDR provider, conduct in-depth research. Reach out to the most popular companies and carefully examine their offerings. Studying various virtual data rooms may take time, but eventually, you’ll pick the one that perfectly meets your needs.

Decide whether you need a generic or industry-specific VDR and analyze their features. Since the ultimate goal of a data room is to keep your information safe and ensure uninterrupted file sharing, pay special attention to confidentiality and sharing features.

Bear in mind that you can always try to negotiate the price with your provider. Also, try to avoid variable fees that are based on the number of users or accessed files. It is more cost-efficient to buy a plan with a fixed subscription fee.

3. Upload your documents

The next step in setting up a virtual data room is to transfer your files. Usually, VDRs provide you with drag-and-drop capabilities and mass-upload features, so you can easily manage the process. There is no need to worry if you have a lot of data because the software allows for quick document classification and organization.

Now, you can seamlessly navigate files and decide who gets access to which data. Adding, removing, classifying, and searching necessary information won’t be a problem thanks to the VDR’s capabilities. With a virtual data room, your due diligence processes will advance significantly.

4. Create an appropriate NDA

A virtual data room setup won’t be complete without validating an NDA. Before you provide access to any external parties or shareholders, you need to arrange non-disclosure protocols. Get all the necessary confirmations from your legal department or other members of your organization prior to file sharing. To prevent unwanted information leaks, always remember data protection and confidentiality when using your VDR.

5. Build groups

To set different access permissions and security rules, create separate groups and add users. Be careful when defining groups and inviting users to your virtual data room. Your goal is to target only specific organization members for  viewing and sharing material. Therefore, make sure that users are not erroneously added to categories.

6. Define rules and limitations

One of the final steps to prepare a virtual data room for usage is setting up security rules and permissions. You can regulate how a user views and accesses documents by watermarking them. With the help of a watermark, you can define what files can be downloaded, edited, copied, or printed. Make sure your VDR administrator is aware of your objectives and provide them with full control over the security rules and permissions.

7. Test and start using your VDR

After arranging your VDR, it’s time to test your software. Choose a few colleagues and allow them access to the virtual data room to check different features. If the program runs without errors and interruptions, your virtual data room is ready to go live!

Wrapping up 

As you can see, there is nothing difficult about setting up a virtual data room. In brief, you need to choose the right provider, properly organize your files, upload all the documents in bulk, create an NDA, and build groups that have specific access limitations. After following these simple steps, you are ready to experience all the benefits of your VDR.

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