4 Easy Steps to Setup a Virtual data Room


The term virtual data room (VDR) refers to an online database for storing and sharing confidential information. Unlike other types of databases, VDRs come with advanced features that provide additional security for financial transactions. This provides organizations with an ongoing document repository to organize critical documents and create secure access controls. Setting up such a room can be accomplished in these four key steps.

Step 1 – Choose a Virtual Data Room Provider 

The first step is to choose a reliable data room provider. Before selecting a vendor, do adequate research and identify the pros and cons of using the available providers. You can use VDR comparison charts and read reviews online to learn about the various vendors and the products they bring to the market. Choose a provider that matches the needs of your organization, set up your room, and invite users. Also, consider whether the providers offer training materials and customer support during the setup of the virtual data room. 

Step 2 – Create Groups of Users

Do not just add users to the virtual data room and leave it at that. Just like you would with your organized physical data room, take time to create groups that define the roles of team members. Organize your users into groups depending on the roles they play and the amount of control they will have in the data room. Once you have added the users, set permissions, create folders, and upload documents to keep the room organization. Determine who will be the administrators, how users will request documents, how documents will be shared, and more.

Step 3 – Set Permissions

Since most of the data to be shared is confidential and sensitive, you need to handle how it is accessed and shared by users. This is achieved by setting permission for various groups of users and allowing group-level management. Some of the permissions you may need to include are file requests, memberships, admin duties, group relationships, and more. For instance, members of a certain group need to be set up so that only authorized users are allowed to view the document while others can view and download it. You also need to be specific about whether editing is allowed and the inclusion of additional features such as watermarks.

Step 4 – Add Files and Documents

Your virtual data room becomes complete after adding the relevant files and documents. The VDR empowers the team to retrieve, transform, and classify documents within a single platform. The various benefits of a VDR include bulk upload, smart research, built-in document viewing, drag-and-drop, and more that makes sharing of data easier and more efficient. The document viewer and built-in Excel integration allow your users to view any file without having to leave the platform. This not only enhances collaboration but also ensures the safety of data and quickens decision-making. 

Setting a virtual data room is not rocket science. It will take you less effort to set it up, add users, and have your teams working together than you might think. VDRs are meant to make your work easier and more secure, and they come with all the necessary tools to achieve that.