The Virtual Data Room Setup Guide For Startups

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?

First, what is a data room? Put simply, a data room is a temporary storage space for sensitive information in an organization. A Virtual Data Room (VDR) is a web-based virtual workspace designed to facilitate secure file sharing online between multiple parties.

Virtual data room platforms enable organizations to optimize their business processes by facilitating collaboration across various finance, legal, and human resources departments. While virtual data rooms 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.

Before setting up a Virtual Data Room

Before setting up a virtual data room, you need to consider the following factors.

Number of users

You will need to decide how many people will be collaborating on content and using the Virtual data room. Usually, there are two options for this, either you can use one cirtual data room for a group of people or have multiple VDRs. If you want to use one virtual data room 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. 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 virtual data room, or you can create multiple virtual data rooms for different business units within your organization.

Control and management

When setting up a virtual data room, you need to consider the powers and capabilities of the administrator. The administrator of the cirtual data room needs to have complete control over all user access, along with all passwords and logins.

Use and access

The use of the virtual data room will depend on how you plan to use it. You can choose to allow people from different departments (e.g., finance, HR, and IT) or companies to use the cirtual data room. In addition, you can also allow for the use of your virtual data room 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.

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 virtual data room will need an account with that computer, and they will also need a connection to the Internet.

Virtual Data Room security

It is vital to have a secure virtual data room. You can learn more about creating a secure virtual data room by reading our article.

Accessibility

The person setting up the virtual data room 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.

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 VDR 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.

Adding users

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.

Setting up a Virtual Data Room in Sizle

Companies can use Sizle to easily create virtual data rooms. Follow the steps below to learn how to create a virtual data room in Sizle.

1. Go to the Sizle website and click on “Get started”
2. Once logged into the site, click on “Create Workspace.”
3. Enter a name for your virtual data room on the next page.
4. Set an avatar, set invite rules and invite others
5. Upload, manage and share documents in your virtual data room

Why you should use 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.

Secure file transfer

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.

FAQs

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.

Final thoughts

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.

A virtual data room from Sizle can become your most valuable business intelligence platform, making it easy to share files with your team and clients and generate new leads without leaving your desk.