What is Virtual Data Room Software?
A virtual data room (VDR) is an secure repository that contains confidential documents and files for business-critical projects. It is used in M&A due diligence as well as fundraising, legal issues and other dealmaking procedures A VDR helps teams to share and review sensitive information on the Internet.
VDR providers differ in terms of complexity, cost and features. Certain VDRs are designed for specific industries while others are suitable for all kinds of businesses. The best one will speed up the deal process and provide a strong foundation for ongoing document management.
In addition to protecting data, the top virtual data rooms also allow collaboration between team members. This is essential for businesses that frequently collaborate with external partners or investors, and need to ensure documents are kept up-to-date and accessible on any device. Other features that are essential include document watermarking and specific permissions settings.
Many companies make use of free file sharing tools like Dropbox and Google Drive, to share confidential information. However, these don’t provide the same level security. A single data breach can cost a business millions of dollars in fines and missed opportunities.
When choosing a VDR partner, choose one that offers an opportunity to try the service risk-free or with a payment plan. Select a VDR with robust security features, such as malware scanning, two factor authentication, and encrypted storage. This will protect your organization from cyber-attacks and provide peace of head to stakeholders and partners.