Using a digital data room is a common way for companies to share confidential documents with investors during due diligence. It is a fast and secure way to exchange documents during the course of a transaction. Email attachments, FTP websites, or physical storage facilities are no longer needed.

The compliance of the VDR with the regulations is the most important aspect to take into consideration, since it reduces the chance that a business will be shut down or fined, or even face legal proceedings. The best virtual data rooms comply with or surpass industry standards, including GDPR, ISO/IEC 27001, SOC, and HIPAA.

When selecting a VDR ensure you verify the ease of onboarding, user acceptance, and collaboration tools. The best VDRs have intuitive interfaces and easy workflows that let users quickly be up and running.

The first step when creating the data room is to create folders and upload documents. Once the data room has been created it will be accessible to all participants. Users with permissions from legal administrator, company editor and company viewer can access all documents and folders in a dataroom. Users can select Viewing History for additional privacy control. This will show the details of each time a document is viewed including who, when and for how long. If users no longer require access, they can be removed from the data room by navigating to the Access tab and selecting Remove the user. The structure of the folder can be changed if needed.