Virtual Data Room provides a secure, centrally located location for authorized parties to access and share digital documents with complete transparency. The heaviest VDR users are in life sciences and technology, but companies in every industry need to secure confidential documents. When evaluating potential VDR providers, look at features like file-level usage insights powerful controls, as well as customizable permission settings to ensure that your documents are shared and secured. It is essential to select a platform that is able to be scalable both up and down, allowing for the flexibility to open and close an online repository to meet your project or transaction needs with minimal disruption.
A reliable provider should have strict physical security measures, including offsite backups of data and multiple layers of firewalls and multifactor authentication to ensure that no one is able to gain access. A virtual data room will allow administrators to keep track of document and user activity, to identify who is accessing, printing or downloading documents. The ability to apply dynamic watermarks to every page of viewed or printed documents also enhances the security of sensitive information.
VDRs are most commonly utilized for M&A due diligence, but they can be used in any scenario that requires high levels of security and privacy. Private equity funds and firms, as an example, can securely share tax information and portfolio information with prospective investors via the VDR. Furthermore, a virtual data room can speed up the process of reviewing contracts with features like auto-redaction as well as document organization to ensure that PII is not exposed.