Virtual Data Room provides a secure, centralized place for authorized parties to view and share digital documents with full transparency. The heaviest VDR users are in the life sciences and technology, but companies across all industries must safeguard confidential information. When looking at potential VDR providers, look at features like insights on usage of files powerful controls, as well as customizable permission settings to ensure that your documents are shared and secured. A platform that is scalable is important, as it allows for the flexibility of closing and opening an online repository to meet the needs of transactions or projects with minimal disruption.
A reputable company should have rigorous physical security measures that include backups of data offsite and multiple layers of firewalls, and multifactor authentication to block unauthorized access. Additionally, a virtual data room should enable administrators to monitor user and document activity to determine who is who, when and from where documents are being printed, accessed or downloaded. The ability to add dynamic watermarks to all printed and viewed pages of documents further enhances the security of sensitive information.
VDRs are most commonly employed for M&A due-diligence but they can also be used in any circumstance that requires a high level of security and privacy. For example, private equity firms and funds can securely share information about their portfolios as well as tax information with prospective 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 exposed.