A virtual dataroom (VDR) is an online repository that holds confidential documents and files. It is used to support projects that are essential to the business. A VDR is used in M&A due-diligence, fundraising, legal issues, as well as other dealmaking process. It allows teams to review and share sensitive information on the Internet.
VDR providers vary in terms of their complexity, price and features. Some are specialized for specific industries, while others can accommodate the needs of all industries and sectors. The best one will accelerate the process of buying and establish a solid foundation for ongoing document handling.
In addition to protecting information, the best virtual data rooms also facilitate collaboration between team members. This is especially crucial for businesses that have investors and other partners. They require documents to be are available and up-to-date on any device. Other features that are essential include document watermarking and granular permissions settings.
Many companies use free file sharing tools, such as Dropbox or Google Drive, but these don’t provide the same level of security necessary when sharing confidential data. A single data breach could cost a company millions of dollars in fines, and also lose opportunities.
When selecting a VDR choose a vendor that offers the option of a trial period for free or a no-risk payment plans. Choose a VDR with robust security features like malware scanning, two factor authentication, and encrypted storage. This will safeguard your company against cyberattacks and provide peace of head to stakeholders and partners.