A virtual data room is a cloud-based file sharing tool that’s used for secure storage and transfer of confidential documents during business transactions. These documents could include contracts, financial statements tax information, financial statements, and intellectual property. Keeping this sensitive material secure but convenient to access is the primary reason businesses utilize VDRs.
It is crucial to compare the features of VDRs to figure the one that is most suitable for your business. Next, evaluate the customer support provided by the service provider. Ideally, the support staff is available round the clock and have multiple options for contact and languages. Verify the certifications of the provider for security. The most trusted providers will have at minimum ISO 27001, SOC 1/2/3, HIPAA, and GDPR compliance.
Some important functions to look for in the VDR include reports and analytics on user activity, granular permissions, and bulk invitations for users. In addition, it’s important to choose a provider with two-step/multi-factor authentication. This security feature drastically reduces hacking attempts that are not authorized and unauthorized. Device purging is another beneficial feature that allows administrators to restrict access or block it from a particular device.
The ability to collaborate with a variety of users is crucial for many companies. The built-in Q&A module of a VDR and annotations to documents make it easy for users to be on the same page when working remotely. This also improves productivity by reducing how long it takes to complete due diligence requests. It’s also important to choose a service provider that provides mobile apps to allow you to work while on the move.