The design of your data room will allow you to ensure that your project is successful. The user interface, file type, size limits, as well as storage are the most crucial factors to be considered. Also, consider the compliance features and what type of auditability you get with 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 effect on how easily they can later be found. Separating text documents into Excel and financial documents in PDF format will make it easier to see and manipulate the files. In the name of the file or folder it could be helpful to include the date on which the file was uploaded, as well as any other relevant details.
Maintaining a current data room will save you and your investors time, especially when it comes to due diligence or a possible deal. It will also demonstrate that you take investor communication and transparency seriously, enhancing trustworthiness within the process.
When choosing a provider ensure that the platform provides granular permissions which allow you to control which files users can see and download. Also, ensure that your service can secure files for storage and transmission, which adds to the security of your project. Other security features include a timeout that can be set to be a variable duration. It closes a user’s session after the specified time, if the user doesn’t log out. Multi-factor authentication is another feature that will enhance security.