The key to creating a strong virtual data room is to have a logical file structure with distinct, informative folder titles. Users can easily find what they are searching for. It also helps that the documents themselves are structured with clear and consistent formats (e.g. Text documents with financials in Excel will help you view the files.
Another important factor is granular permission levels to stop document leakage and exfiltration. VDR software allows teams to be split into groups based on their role in due diligence. For example, “management” or “finance” can be assigned access.
A VDR should also be intuitive to all users, even founders and investors who are not online data storage enhancing project collaboration technically minded. Searching and navigating the VDR should be simple and take only seconds, similar to navigating a Dropbox. The tool should also be able to support non-proprietary formats as well as allow for easy collaboration with third parties.
The most powerful VDRs come with advanced features that simplifies and streamlines crucial business processes, like M&A due diligence or the IPO process. For instance, a good solution combines project management and a virtual data room in one. It also has the power of an OCR engine that automatically reads PDFs and other files- an essential feature for M&A diligence workflows. The best solutions provide 24 hours technical support so that specialists are available at all times during the crucial phases of a transaction.