A virtual data room (VDR) is an encrypted repository that is used to store and share confidential documents with stakeholders during the due diligence process. It is usually used in M&A transactions, however it can also be useful in other business events such as fundraising, IPOs and legal proceedings.

Investors want to see many different aspects before deciding to invest in your business, such as your team, product vision market opportunities competitive landscape, and the level of traction. The process of assembling and presenting this information can take time, time you could better spend building your business.

You can simplify due diligence and make your business more attractive to investors through the data room. But with so many options for data rooms there what do you do to select the best one for your needs?

Find out the reason for your data room. Identify the documents you want to upload and classify them for easy navigation. It is also necessary set permissions for each file. It is recommended that you test the data room before you launch it to make sure that everything is working properly.

Next, select a VDR provider. There are a variety of options, from mainstream software to more specific software. You should choose a pricing plan that suits your needs. For example you might prefer to pay per page or per storage. Some even offer a free trial that is a great way to determine whether the software is useful content suitable for you. Also, make sure you examine reviews and safety features.