A virtual data room is an essential tool for managing, sharing and securing confidential information, whether you are facilitating M&A transactions, collaborating outside your firewall with partners or sharing confidential data to clients. However, not all VDR providers are created equal. In fact, selecting the wrong VDR can expose your business to security risks and cost. Thankfully, there’s a way to determine which VDR providers are worth your business.
When you’re looking for a VDR to purchase, read online reviews and visit their websites. You can also chat with a representative on the phone or via live chat to get a sense of how they respond to your questions and concerns.
When looking for a service provider, be sure to check that they offer many features that will meet your specific requirements. This includes features such as document management, file encryption and collaboration. Look for a provider who offers two-factor authentication, which will prevent password thefts, and advanced security measures such as dynamic data encryption and watermarks.
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 often focus on M&A transactions, a modern VDR can be used by any business or team that requires a high level of collaboration and security controls. Examples include law firms and banks, mortgage brokers, hedge funds, private equity firms, venture capital firms, and venture capital companies.