How to Create a Data Room in SharePoint

Virtual data rooms (VDRs) have become essential for businesses handling sensitive information during mergers, acquisitions, fundraising, and other critical transactions.

In this guide, we'll walk you through how to set up a data room using SharePoint, and then show you why Papermark's dedicated VDR solution might be a better alternative for your needs.

Data room solutions comparison

How to create a data room in SharePoint

Step 1: Set up SharePoint site

1. Access SharePoint admin center
2. Create a new site collection
3. Choose "Team site" template
4. Configure site permissions
5. Set up document libraries

Step 2: Configure external sharing settings

1. Enable external sharing at organization level
2. Configure site-level sharing settings
3. Set up Microsoft Entra B2B integration
4. Configure guest access settings
5. Set up sharing restrictions

Step 3: Organize document structure

1. Create main folders for different document types
2. Set up metadata columns
3. Configure views and filters
4. Set up document templates
5. Create custom workflows

Step 4: Manage user access

1. Create security groups
2. Assign permissions
3. Set up external sharing
4. Configure guest access
5. Set up access expiration

Note: External sharing is turned on by default in SharePoint. For sensitive information, it's recommended to store it in a site with external sharing turned off. You can create additional sites specifically for external sharing to better manage security risks.

Why Papermark is a better data room solution

While SharePoint can be configured as a basic data room, Papermark offers a specialized solution designed specifically for secure document sharing and due diligence processes. Our platform combines enterprise-grade security with an intuitive interface, making it the ideal choice for businesses handling sensitive information.

Papermark stands out with its comprehensive feature set that addresses the specific needs of virtual data rooms:

• Dynamic watermarking with viewer information, granular access controls, and real-time activity monitoring
• Intuitive interface with mobile-friendly access and simplified user management
• Advanced analytics including detailed activity tracking, viewer analytics, and exportable reports
• Cost-effective pricing with no enterprise license required and quick deployment
• Specialized features like Q&A sections for due diligence, document expiration settings, and custom branding options

Create Your Secure Data Room

Setting up a data room with Papermark

Step 1: Create your data room

1. Sign up for Papermark
2. Create a new data room
3. Choose your security settings
4. Set up branding options
5. Configure notification preferences

Step 2: Upload and organize documents

1. Upload your documents
2. Create folder structure
3. Set document permissions
4. Add metadata
5. Configure viewing settings

Create Your Secure Data Room

Step 3: Manage access

1. Invite users
2. Set role-based permissions
3. Configure access expiration
4. Enable watermarking
5. Set up audit requirements

Step 4: Monitor and control

1. Track user activity
2. Monitor document access
3. Generate reports
4. Manage Q&A section
5. Control document versions

Conclusion

While SharePoint can be configured as a basic data room, Papermark provides a specialized solution that offers superior security, ease of use, and features specifically designed for virtual data rooms. For businesses handling sensitive information during critical transactions, Papermark's dedicated VDR solution provides the security, control, and efficiency needed for successful due diligence processes.

Create Your Secure Data Room

Frequently asked questions