Virtual Data Rooms are an secure and central location where authorized parties can view and transfer digital files with complete transparency. Life sciences and technology are the most frequent users of VDR, but businesses from all industries need to secure confidential documents. When evaluating potential VDR providers, look at features like file-level usage insights, robust controls and customizable permission settings to ensure that your documents are securely stored and protected. It is important to have a platform that can be scalable upwards and downwards, allowing for the flexibility to open and shut down an online repository in order to meet your project or transaction requirements with minimal disruption.
A reputable company will have rigorous physical security measures, which include offsite backups of your data. Multiple layers of firewalls are also advised to block virtual data room features unauthorized entry. A virtual data room can enable administrators to monitor the activity of users and documents, to identify who is printing or downloading documents. The ability to apply dynamic watermarks to all viewed and printed document pages further enhances the security of sensitive information.
The most popular use-case for VDR is that of VDR is M&A due diligence, however it can be used in any circumstance where high levels of privacy and security are required. Private equity funds and companies, for instance, can securely share the information about their portfolios and taxes with prospective investors via the VDR. A virtual data room may also streamline contract review by incorporating features such as automatic redaction and document organization. This assures that PII will not be disclosed.