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. All VDR providers are not created equal. Choosing the wrong VDR will expose your company’s security to risks and increase costs. There’s a simple way to determine which VDR service providers are worth your money.
As you’re shopping for a VDR, start by reading online reviews and checking out 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 choosing a provider, ensure that they offer a variety of features to suit your needs. Included in this are features for document security, collaboration and file management. 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 them to provide a competitive price without compromising security and control.
While traditional VDRs tend to focus on M&A, a VDR modern can be used by any team or company that requires a high degree of collaboration important link and control over security. Examples include law firms, banks, mortgage brokers, venture capital companies, hedge funds and private equity firms.