Whether you’re facilitating an M&A transaction, collaborating with partners outside your firewall or sharing confidential data with clients, a virtual data room (VDR) is a critical tool for securely managing and sharing this information. But not all VDRs are created equally. The wrong VDR may expose your company to increased security risks and costs. Thankfully, there’s a way to determine which VDR providers are worth your business.
As you’re shopping for a VDR, start by reading online reviews and checking out their websites. You can talk to a representative by phone or live chat to see how they respond and answer questions.
When looking at a provider, make sure they offer a wide variety of features to meet your specific needs. Included in this are features for document security, collaboration and file management. Also, look for providers that offer two-factor verification to prevent password robbery as well as advanced security methods like dynamic watermarks or data encryption.
A modern VDR is one that leverages new business models and technology innovations like software-as-a-service delivery. This allows for a competitive pricing without compromising control and security.
While traditional VDRs are often focused on M&A deals, a modern VDR is available to any team or business that requires high levels of collaboration and security. Examples include law companies, banks and mortgage brokers. Venture capital firms, hedge funds and private equity are also examples.