A virtual data room (VDR) is a secure repository that houses confidential documents and files needed for business-critical projects. A VDR is utilized in M&A due-diligence, fundraising legal issues, as well as other processes for making deals. It helps teams review and share sensitive data over the Internet.
VDR providers differ in the way they are structured, price and features. Certain are specifically designed for certain industries, while others can be adapted to the needs of all companies and industry sectors. The best one will accelerate the process of buying and create a solid foundation for ongoing document management.
The best virtual datarooms not only secure information but also permit collaboration between team members. This is especially important for businesses that have external partners and investors and must ensure that documents are accessible and updated on any device. Other critical features include document watermarking, granular permissions settings and audit trails that are detailed.
Many companies make use of free file-sharing software, such as Dropbox and Google Drive, to share confidential information. But, these tools don’t offer the same level of security. In fact the risk of a single data breach could cost a company millions of dollars in fines and business opportunities lost.
When choosing a VDR make sure you choose an option that provides no-cost trial or a no-risk payment plans. Also, be sure to choose a VDR that has robust security features, like malware scanning, two-factor authentication and encrypted storage. This will protect your organization against cyber-attacks and provide peace of mind to your stakeholders and partners.