Virtual Data Room Providers are secure, cloud-based platforms that allow sharing of sensitive documents with multiple parties. They provide a range of features designed to support due diligence, M&A, and other sensitive transactions. When choosing a VDR provider, think about the type of files you’re planning to share, the size of your repository and how many collaborations are required. If you can, pick an option that offers an easy learning curve and offers 24/7 support.
Typically, VDRs are used during M&A transactions, but they can serve other functions. A company that is considering an IPO may use a VDR as a way to provide investors and financial institutions with secure access to crucial documents. This speeds up investment decisions and cuts down the timeframe for fundraising.
The best virtual data rooms are ones that are security-first which protect sensitive data with the ability to grant granular user permissions, multi-factor authentication, as well as other security measures. They also provide watermarking on documents, a view only mode, screenshot blocking, and encrypted downloads to prevent uninvited file sharing. Additionally, a secure virtual data room can help companies adhere to ISO 27001, GDPR, HIPAA and other applicable regulatory standards.
A VDR’s capability to handle multiple tasks simultaneously is a further benefit. If you’re conducting due diligence on multiple startups at the same time you can create multiple workspaces that have different security settings and documents. This way, you can easily keep track of the progress of each project and stop them from being overlapping.