https://electronicdataroom.info/principles-of-performing-quality-technology-diligent-analysis/
In the past when auditors or investors required to review the company’s documentation, it was done by renting a room in an actual location where hundreds or even thousands of binders were piled up for inspection. This was a lengthy and costly process for all parties.
With a VDR however, all data is accessible through the Internet. This removes the requirement for a physical space, allowing users to work from anywhere in the world. It facilitates a faster and more efficient due-diligence as compared to analyzing hundreds of binders full of data.
When choosing a VDR service for due diligence look for features that provide automatic indexing and bulk-structure import. These functions help VCs and other stakeholders to navigate the VDR document library. Taxonomy and naming conventions that are logical can also be helpful. It is important to find an VDR with alert and notification capabilities, so everyone is aware the moment new files are added to the system.
A good VDR will also restrict the possibility of printing and download files to avoid sensitive information from being leaked or distributed by the wrong individuals. It will also offer customized settings for the end user’s permissions which permit administrators to manage specific authorization levels for several users. These capabilities will help avoid security breaches and penalities from the regulatory side. Due diligence using technology and vdr is also essential for startups to show their value to investors.