Virtual Data Room provides a secure, centralized space for authorized parties to access and share digital documents in full transparency. The heaviest VDR users are in life sciences and tech, however companies across all industries need to secure confidential documents. When evaluating potential VDR providers, consider features like file-level usage insights as well as robust controls and custom permission settings to ensure that your documents are securely stored and protected. A scalable platform is vital, since it gives you the option of opening and closing an online repository to support project-based or transaction-based needs with minimal disruption.
A reliable company will have rigorous physical security measures, such as offsite backups of your data. Multiple layers of firewalls are recommended to prevent unauthorized entry. A virtual data room will allow administrators to monitor the activity of users and documents, to identify who is printing, accessing or downloading documents. The capability to add dynamic watermarks to all pages of printed or viewed documents also enhances the security of sensitive information.
The most popular use-case for the VDR is M&A due diligence, however it can be used in any scenario where high levels of security and why is a virtual data room privacy are required. Private equity funds and firms, for instance, can safely share details of portfolios and tax information with potential investors through the VDR. Furthermore, a virtual data room can streamline contract review by incorporating features like auto-redaction and document management to ensure that PII is not exposed.