Data rooms are typically used to store important, track and share business documents. They are commonly used during M&A transactions or fundraising as well as other due diligence processes. Contrary to email and free file sharing services, they can be secured with password protection, two-factor authentication, watermarks, and other security features. This is especially useful for companies dealing with sensitive data, such as medical devices or biotechnology.
Authorized users are able to access a data room from any place that has internet connectivity including mobile phones and tablets. Users can browse, print and download documents in the data room. They can save them for review later. Users can also submit questions, receive notifications when the document is uploaded, or if there are new comments on an existing document. The data room can be searched which makes it easy to locate information, even if information is scattered or not organized.
To maximize the benefits of website your data room, you should create an organized structure for your folders that reflects your company or the transaction you’re involved. Label the folders clearly and group documents together to make it easy for buyers to view the whole picture. Additionally, you should consider implementing an audit log in order to keep track of who has downloaded or viewed which document, and when. This is an essential feature to prove compliance with regulatory requirements, or to protect intellectual property.
