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When a startup creates a virtual data room, they need to determine who and how many people should be given access to the files within it. This involves setting permissions for each individual user, adjusting the level of access they have with their specific job duties and responsibilities. Investors at the stage one may not require full access to the repository and only be able to see financial statements and a business plan. This is based on the principle of least privilige and shields sensitive information from unauthorised individuals. It is also an excellent idea to review the user’s access regularly and then revoke it if their roles and responsibilities have changed.

The setup process for the setup of a VDR often involves the uploading of all necessary files into a well-organized folder with clear titles and descriptions. This arrangement allows parties to quickly and efficiently locate the data they require. It is also advisable to use a consistent naming convention and tag files with metadata before uploading them so that they can be easily searched and located in the data room.

A data room should include an Q&A feature that allows users to ask and answer questions. This can speed up due diligence and provide faster and more accurate responses. It is also recommended to add dynamic watermarks on all downloaded and printed documents as a precautionary measure. Additionally, a data room should offer multi-factor authentication and adjustable session timeouts to enhance security measures.