The key to creating an effective virtual data room is a well-organized file structure that has clear, informative folder titles. This way, users can find what they need within minutes. It is also beneficial to arrange the documents in an organized and clear format (e.g. documents that contain text in PDF format and financials in Excel) to make it easier to browse the files and manipulating their content.
Another important factor is granular permission levels to stop document leakage and exfiltration. VDR software allows teams to be divided into groups according to their roles in due diligence. For instance, “management” or “finance” can be granted access.
Also it is important that a VDR should be a breeze for all types of users, including non-technical founders and investors. Searching and navigating should take a matter of seconds and be as easy as navigating through a congested Dropbox or drive. The tool should also be able to work with non-proprietary formats of files and facilitate collaboration with external parties.
The most powerful VDRs have advanced functionality which streamlines and makes simpler business processes — like M&A due diligence or the IPO process. For instance, the ideal solution combines project management and a virtual data room in one with a powerful OCR engine to automatically read PDFs and other documents -an essential aspect for M&A diligence workflows. The best solutions also provide 24/7 technical support to ensure that experts with the right qualifications can be consulted immediately when required during crucial stages of transactions.