When companies are negotiating or investing, they need to review an enormous amount of information. This can be overwhelming, especially in the case of documents that are highly confidential. A virtual data room (VDR) is a fantastic way to simplify the process by giving multiple parties the ability to review documents at the same time in a secure environment. This lets the transaction progress quickly and minimises any potential security risks.
VDRs are becoming more and more useful in a range of industries, including M&A, fundraising and IPOs. The technology is also being utilized by SMEs and startups that may have hybrid teams or operate from a remote location.
When choosing the right VDR, there are several important features to consider. These include:
Document Security
A VDR should have a top level document security, with access permissions that are tailored to the specific project or user. Two-factor authentication is also a good feature as it adds another layer of security by the requirement that users prove their identity using a second method, like the use of a code that is sent to their mobile phone.
Document Management Streamlined
There should be a variety of tools available to manage a project. Document version control is just one. Administrators can track the history of documents and know when they have been modified. A useful feature is the ability to add notes to any document, but they isn’t visible to other users. This will allow team members to highlight key parts of a document and will help to avoid mistakes in communication.
