Updated November 2021
A Virtual Data Room allows data to be stored and accessed from a remote server. It enables users to access the same data from different locations and allows you access to your cloud in your office, at home, or anywhere in the world.
Setting up a virtual data room is simple. Below, you will find everything you need to know about virtual data rooms and how to set up a virtual data room.
What Is A Virtual Data Room, And How Do They Work?
First, what is a data room? Put simply, a data room is a temporary storage space for sensitive information in an organization.
What Are Virtual Data Rooms?
A Virtual Data Room (VDR) is a web-based virtual workspace designed to facilitate secure file sharing online between multiple parties.
While VDRs might be used solely for internal purposes, such as providing employees with access to corporate documents, you can also use them for external communication with clients, suppliers, and partners.
Virtual Data Rooms allow secure document sharing with authorized people. For example, you can share documents like financial statements, intellectual property, employees agreements, partnership agreements, and cap tables with selected colleagues or clients.
The use of data rooms is mainly for the internal running of an organization or deals like mergers and acquisitions (M&A), banking, startup fundraising processes, real estate management, or any other types of professional services.
Factors to Consider Before Setting up a Virtual Data Room
Before setting up a virtual data room, you need to consider the following factors.
Number of People Using a Virtual Data Room
You will need to decide how many people will be collaborating on content and using the VDR. Usually, there are two options for this, either you can use one VDR for a group of people or have multiple VDRs. If you want to use one VDR for everyone, then your options are limited.
If you have more than one person using the virtual data room, then it is recommended that each user has their login and password so that the information is not shared.
Use of the Virtual Data Room
In addition, you can also allow for the use of your VDR by external parties such as clients or suppliers. You can then set up a separate login for each person permitted to access the virtual data room.
Control of the Virtual Data Room
When setting up a virtual data room, you need to consider the powers and capabilities of the administrator. The administrator of the VDR needs to have complete control over all user access, along with all passwords and logins.
Maintaining and Updating
The person responsible for maintaining and updating the virtual data room should clearly understand what they must do. They will also need to determine how often this will happen, whether weekly, monthly, or quarterly.
Access to the Virtual Data Room
You can allow people to access the virtual data room from any computer (remote access), or you can limit this to specific computers.
If you want remote access, then the person accessing the VDR will need a connection to the Internet, and they will also need an account with a service provider such as Gmail, Yahoo!, or Microsoft Outlook.
If you want to limit access to a specific computer, then the person accessing the VDR will need an account with that computer, and they will also need a connection to the Internet.
Virtual Data Rooms Security
It is vital to have a secure virtual data room. You can learn more about creating a secure VDR by reading our article.
The person setting up the VDR needs to know what kind of network access is available at their business location and whether this will affect their ability to set up a secure VDR.
Number of People Accessing the Virtual Data Room
It is essential to limit the number of users who can access the virtual data room. If you want, you can set up a maximum number of users allowed in your VDR, or you can create multiple virtual data rooms for different business units within your organization.
How to Set Up a Virtual Data Room
You can easily set up a virtual data room. With the following steps, you should be ready to store some confidential information in no time.
Find a Reliable Data Room Provider
The first step is to find a reputable data room provider. Sizle is one of the best available since it has an outstanding reputation for providing safe, secure, and easy-to-use cloud storage for businesses.
Sign up for an Account
Once you’ve chosen a provider, it’s time to sign up and create your account. If you already have an email address associated with the company you work for, enter that when signing up. Otherwise, create a new email address or use one of your existing email addresses.
Create a Secure Folder
Once you’ve signed up, create a new “data room” and give it an appropriate name, such as the name of your company or division or whatever you like. You can also add some information about yourself and what you do at the company, which will help other users understand why they should trust your data.
Create a Password
Once you’ve created your account, log in and create a new password. You will also need to give the data room a unique location name (it’s advisable to use an office or other physical location).
Add Files and Folders
Once you’ve created your data room, it’s time to add files and folders. To do this, click on the “Add file” button at the top of the page and choose a file or folder from your computer (or upload one directly). You can also create subfolders to organize your files.
Create a Backup Schedule
It’s essential to create a good backup plan, especially when storing sensitive or confidential information in your data room. To do this, click on “backup” at the top of the page.
Add Users to the Data Room
Once you’ve created your account, it’s time to add other people who will be able to access the data room (typically employees or contractors). To do this, click on “add user” and choose an appropriate role.
How To Set Up a Virtual Data Room in Sizle?
Companies can use Sizle to share and secure data. What’s more, Sizle has cloud integration capabilities that allow users to save files in Google Drive and Dropbox.
Follow the steps below to learn how to create a virtual data room in Sizle.
- Step 1: Go to the Sizle website and click on “Sign Up.”
- Step 2: You are taken to a page with an overview of your company’s information.
Now you can enter basic information about your business, such as its name, address, phone number, email address, and a description of what kind of data it stores.
- Step 3: Now that you have provided all this information, Sizle will send you an email that will allow you to confirm and log in to your Sizle account.
After successfully confirming your email address, you can set up a virtual data room for your business.
- Step 4: Once logged into the site, click on “Create Workspace.”
And this will lead you to a page that has an overview of your business.
- Step 5: You will need to enter a name for your data room on the next page.
- Step 6: Next, choose whether you want to use a team or individual account.
If you choose the latter, make sure that your email address is valid and verified before proceeding.
- Step 7: You are now taken to another page where you can set up security for your data room.
The page allows you to regulate the kind of access people have to the virtual data room.
- Step 8: You will land on a page to set up your password for your data room. You will provide an email address that you want Sizle to send all notifications about your data room.
- Step 9: On the next page, you will need to provide a security question that only people who have access to your data room can answer. Sizle will use the security question to verify if someone has gone through all the previous steps correctly.
- Step 10: Now that you have filled out all these details about your business, click on “Save.”
Then, you will land on a page where you can add additional people who have access to your data room. You can add as many members as you want.
- Step 11: On the next page, select whether or not these new users should be able to make changes in your data room and whether they should be able to delete it.
If you don’t want them to access this, uncheck the “Can edit and delete” box.
- Step 12: On the next page, select whether or not these new users can see your company’s tax records and VAT numbers.
- Step 13: Click on “Save” to finish the setup of your data room.
Now that you have set up your Sizle account, you can start creating data rooms for all your company’s essential documents.
Reasons Why You Should Set Up a Virtual Data Room
If you’re still unsure about VDRs, find some data room benefits outlined below.
Protection of Your Data
A virtual data room will ensure that only authorized people can access and see the documents you upload. This no unauthorized person can access your sensitive information.
Your details or company financial records will be safe from the prying eyes of unintended third parties.
If you have someone in your company who needs to see certain documents, they can do so without having the copy stored on their computer or smartphone. Thankfully, they won’t have to worry about losing the record and can access it from your data room.
Easy Management of Your Documents
If someone in your company needs access to certain documents, they can do so without worrying about them getting lost or accidentally deleted.
Store Essential Documents and Information
If you don’t want someone in your company to delete a vital document accidentally, you can upload it into the virtual data room. Hence, they won’t be able to do so if they get access to the record.
Help During Mergers And Acquisitions (M&A)
The acquisition process can be lengthy and complicated as it involves multiple stakeholders. During the M&A process, lawyers and other professionals will need access to different documents and communication points to carry out their duties effectively. A data room will come in handy with this process.
If you still have questions about VDRs, don’t worry! Below are answers to some of the most common inquiries people have about virtual data rooms.
Will This Work With My Windows PC?
It is essential to know whether the virtual data room software works with your Windows PC. If you have any questions about this, contact us, and we’ll be happy to help. Keep reading to know how to set up a virtual data room with your Windows PC.
Will This Work with My Mac?
It is essential to know whether the virtual data room software works with your Mac. Keep reading to get the concept of setting up a virtual data room with your Mac.
If you are looking for a way to share information and documents in your company, then a virtual data room is the best solution. You can make sure that people in your company have access to important documents without having to worry about them getting lost or accidentally deleted.
It is the best way to ensure that all of your company’s records are safe and secure.