Step-By-Step Guide On Creating An Online VDR From Scratch: In 5 Minutes Or Less

Step-By-Step Guide On Creating An Online VDR From Scratch

Choosing an electronic data room software is a time-consuming process. You have to go through a grinding data room comparison which usually involves comparing data room pricing models, features, customer reviews, and customer support service. The process may also include interviewing the best data room providers in the market and asking for free trials.

Once you are done with the selection process and choose a vendor, it is time to set up your virtual data room. The Good thing is that virtual data rooms are easy to set up and hardly take 5 to 20 minutes. Here is a detailed guide on how to set up your virtual data room in a matter of a few minutes.

You can also visit for expert opinions if you have trouble choosing the most suitable data room provider for your business.

Important Tips On Setting Your Online Data Room Software

1. Decide which documents to be uploaded to the VDR

Which documents you need to upload to your virtual data room depends on your objectives behind using a data room in the first place.

For instance, if you are using VDR software for permanently storing your business data that will be used and shared in the future, then you may have to upload all types of documents. If you need a data room for financial due diligence, then you may upload selective financial records.

2. Upload and organize documents

The document uploading process is almost similar in different data room services. Generally, the administrator uploads documents to their own account and then moves them to data rooms. That’s because the administrator can create multiple data rooms at the same time. While moving documents to the data room, you can categorize them according to your needs.

At this stage, you can also create user groups and upload documents related to those users rather than adding documents to the data rooms in general. For instance, you can create a group of HRM employees and move HRM documents from your main account to the HRM group.

3. Define user roles and access settings

Defining user roles is important whether you upload documents in groups or data rooms. If you added all types of documents in the data room, setting access roles may take time. For example, if you don’t want investors, HRM, or accountants to access specific documents that are managed by the auditors, then role setting will take time.

On the contrary, uploading documents in the user groups will make sure that only the users of that particular group have access to those documents. Even in the group, you can decide which user(s) can or cannot edit, alter, change, download, or print any document. Creating groups also allows you to restrict their reach only within the group; inter-group communication will be only possible if you permit it.

It is highly recommended to create user accounts and define their roles before sending invitations.

4. Establish Non-Disclosure Agreements (NDAs)

NDAs are not mandatory, but they are very effective in adding an additional security layer, especially when you are dealing with external parties. NDAs are legally binding documents that can be used against the signee in a court of law. 

Businesses mostly use NDAs during M&As, fundraising, joint ventures, prototype presentations, etc., because these transactions involve sharing of sensitive documents. You can also ask your employees to sign NDAs.

The good thing is that data room providers usually provide you with built-in, customizable NDAs that need little modifications. You can always create your own if needed. 

5. Confirm data room software settings

Before inviting users into the data room, it is highly recommended to run a final check on everything, including document access settings, folders, and security protocols. Do that at least twice or even thrice.

6. Invite users

Now that everything is set, it is time to send user invites through emails. If your data room services allow it, you can send invitations in bulk. Once users get invitations, the signup process hardly takes a few minutes. You can either ask them to sign NDAs before accepting the invites or once they complete the login process. 

To strengthen your data security, always look out for advanced features such as fence mode view, file tracking, digital watermarks, etc., especially if you regularly deal with external parties.

For instance, the fence view mode is a great way to restrict users from scanning your documents or taking screenshots  and photos. These features are usually available in all high-end virtual data rooms. Some of the best data rooms include iDeals, SecureDocs, Digify, Firmroom, Merrill Datasite, and ShareVault.

Rounding It Up

Setting up your data room step by step is very important to avoid potential data leaks or discrepancies. That said, not defining user roles properly or adding users before setting access roles can create trouble. The above-mentioned tips can help you set up your data room quickly and in the right manner.


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