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. Choosing the wrong VDR will expose your company’s security to risks and increase costs. There is a method to determine whether a VDR provider is 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 for a service provider, be sure to check that they offer many features that will meet your specific requirements. This includes features like document management, security of files and collaboration. In addition, look for a provider that offers two-factor authentication to relieve password robbery and advanced security methods such as dynamic watermarks and data encryption.
A modern VDR is one that leverages new business models and technology innovations like software-as-a-service delivery. This allows the VDR to offer a low price without compromising security or control.
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 firms and banks, mortgage brokers, hedge funds, private equity firms, venture capital firms, and venture capital companies.