The configuration of your data room can setting up your data room help you ensure a successful project. The most important factors to think about are the user interface, file size/type limitations, and storage. Also, look into compliance features and the level of auditability you get with the service. Compliance features reduce the risk of fines, legal action, and even the closure of your business.
Another aspect to consider is how the data rooms are indexed and organized. How effectively files are grouped and named, as well as the format in which they are uploaded will significantly determine how easily they will be found later. For instance, splitting text documents into PDF format, and financial documents into Excel will simplify viewing and editing the files. In the name of the file or folder, it may be useful to include the date the file was uploaded as well as other relevant details.
A well-maintained data room will save you and your investors time, especially in the event of due diligence or a potential deal. It will also demonstrate that you are taking investor communication as well as transparency and trust very seriously.
When selecting a platform, make sure that it has the ability to grant granular permissions. This allows you to limit the types of files users can see and download. Also, make sure that your provider can encrypt files in both storage and transmission, which adds to the security of your project. Other features that will improve security include a user-configurable session timeout that closes the user’s session after a pre-set period of time if they don’t leave the session, and multi-factor authentication, which requires more than just an account password to access the system.
