A virtual data room enables businesses to save, share and protect proprietary documentation. A VDR is most commonly used to conduct due diligence during M&A or capital raising. However law firms can also use the platform to share confidential documents, including those of clients with third party and clients during litigation. Life science and biotech companies frequently use a VDR in order to collaborate with investors, as well as for sharing clinical trial documents.
The choice of the best VDR partner depends on the unique needs of each business. Investment bankers, for instance require a secure platform that can support processes such as IPOs and capital raises which require significant information sharing. They need a VDR that has a simple interface, is simple to use, and provides the tools needed to complete transactions quickly.
Another consideration is whether the VDR provider provides round-the clock client support. Because deals and other important business processes don’t work in a 9-5 schedule, the top providers provide 24-7 support that is multilingual to help their clients and customers succeed.
When it comes to security, make sure you choose an organization that has robust security features which include malware scanning and multifactor authentication. Security is also maintained with a robust permission system that permits administrators to set access rights based on the roles and the responsibilities. Additionally, look drafting effective board resolutions for a VDR that comes with watermarking and print/download prevention to prevent data leaks. A myriad of reporting and analytics options should also be available to allow you to monitor user activity.