Virtual Data Room provides a secure, centrally accessible space for authorized parties to view and share digital documents with complete transparency. Life sciences and technology are the most frequent users of VDR however, businesses from all industries need to secure confidential documents. When evaluating potential VDR providers, take into consideration features like insights into usage at the file level along with robust controls and adjustable permission settings to ensure that your documents are securely shared and protected. It is crucial to have a platform that can be scaled up and down, allowing for the flexibility to open and close an online repository to meet transaction or project needs with minimal disruption.
A reputable provider should have strict physical security measures, including backups of data offsite as well as multiple layers of firewalls and multifactor authentication to ensure that no one is able to gain access. A virtual data room will also allow administrators to keep track of the user and document activity, to identify who is printing or downloading documents. The ability to apply dynamic watermarks to all printed and viewed document pages further reinforces protection of sensitive information.
VDRs are most commonly used for M&A due-diligence, however they can be utilized in any situation that requires high levels of privacy and security. For example private equity firms and funds can safely share portfolio information and tax information with potential investors through the use of a VDR. Furthermore, a virtual information room can streamline contract review with features such as automatic redaction and document organization to ensure that PII is not disclosed.