Virtual Data Room provides a secure, centrally located location for authorized parties to view and share digital documents with full transparency. The heaviest VDR users are in life sciences and technology, however businesses across all industries need to safeguard confidential information. Consider features such as information on usage at the file level, robust controls, and customizable permissions when evaluating potential VDR vendors to ensure your documents are shared and safeguarded in a secure manner. It is essential to choose an option that can be scalable both up and down, allowing for the possibility of opening and closing an online repository in order to meet your project or transaction needs with minimal disruption.
A reliable provider should have strict physical security measures that include offsite data backups and multiple layers of firewalls, and multifactor authentication to ensure that no one is able to gain access. A virtual data room will also permit administrators to monitor the user and document activity, to determine who is printing or downloading documents. The capability to add dynamic watermarks to all printed and viewed document pages further reinforces protection of sensitive information.
VDRs are primarily utilized for M&A due-diligence, however they can be used in any situation that requires a high level of security and privacy. For example private equity firms and funds can safely share information about their portfolios and tax information with potential investors using a VDR. A virtual data room can simplify contract review by incorporating features like automatic redaction as well as document organization. This guarantees that PII will not be exposed.