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. 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 Web Site can also speak to a representative via live chat, phone or email to get an idea of the customer service experience and how they handle questions and concerns.
When looking at a provider, make sure they offer a wide variety of features to meet your specific needs. This includes features for document management, file security and collaboration. You should also look for a service provider that offers advanced security features such as dynamic watermarks, data encryption, and two-factor authorization to reduce password theft.
A modern VDR is one that leverages new business models and technology innovations like software-as-a-service delivery. This allows them to offer a competitive price, without compromising on security and control.
While traditional VDRs focus on M&A transaction, a VDR of the modern era can be used for any business or team who requires a high-level of collaboration and safety controls. Examples include law firms, banks, mortgage brokers, venture capital companies, hedge funds and private equity firms.