http://electronicdataroom.info/5-tips-for-working-with-any-document-repository/

In the past when auditors or investors needed to look over the company’s documents, this was done by renting a room in a physical space where hundreds or thousands of binder were piled up for inspection. This was a lengthy and costly process for everyone involved.

With a VDR however, all the data is accessible through the Internet. This means that there is no need for a physical space, allowing users to work from any location in the world. This allows for a quicker and more efficient due-diligence as compared to analyzing hundreds of binders stuffed with information.

When selecting a VDR for due diligence, think about features like automatic indexing and bulk structure import. These features aid VCs and other stakeholders to navigate the VDR document library. A rational taxonomy and name conventions are helpful as well. It is important to find an VDR that has alert and notification capabilities so that all everyone is aware when new files are added to the system.

Furthermore, a quality VDR will restrict file printing and downloading capabilities to ensure that sensitive information isn’t leaked or distributed to unauthorized people. It will also provide customized settings for the end user’s permissions that permit administrators to manage specific authorization levels for several users. These capabilities will help avoid security breaches and penalties from regulatory authorities. Due diligence using technology and vdr is also crucial for startups to demonstrate their worth to investors.