A virtual data room (VDR) is a secure online environment to store and share documents that are highly confidential. It is used by a variety of industries to improve communication and collaboration among many parties that aren’t inside the firewall. Common applications include M&A, litigation, bankruptcy and fundraising, as well as auditors.
When choosing a VDR make sure it is multi-level authenticated with flexible permissions settings that can be adapted to your specific needs. You should look for a VDR that can verify the device’s IP address, type of device and the location of users when they log in. This will ensure that data cannot be accessed via an unauthorised device. Two-factor authentication is a different option to consider. This requires the use of a password and additional information or codes.
Finally, you should find the VDR that can track document activity and provide customizable reports. This will help you identify who was able to access which documents and conduct searches. This feature is typically included in the fundamental features of a good VDR or you could add it as an extension to existing solutions.
Choosing the best online VDR is the first step to completing your corporate transactions in a safe and efficient manner. Before you sign in, it’s essential to know the security features, options for file-sharing, certifications, and customer service that a vendor provides. It is also essential to test the VDR prior to signing an agreement. Request a trial for free and request to be set up for a number of members of your team.