Virtual Data Room provides a secure, centrally located space for authorized parties to access and share digital documents in complete transparency. The largest VDR users are in the life sciences and technology, but companies across all industries must secure confidential documents. Take into consideration features like file-level usage insight, robust controls, and customizable permission settings when you are evaluating potential VDR vendors to ensure that your documents are shared and protected with security. A platform that is scalable is essential, as it gives you the option of opening and closing an online repository to accommodate project-based or transaction-based needs with minimal disruption.

A reputable provider has strict physical security measures, including offsite backups of data. Multiple layers of firewalls are recommended to stop unauthorized access. A virtual data room will allow administrators to monitor document and user activity, to identify who is accessing, printing or downloading documents. The ability to add dynamic watermarks on all pages of viewed or printed documents further increases the security of sensitive information.

VDRs are typically employed for M&A due diligence, but they can be used in any how to set up your virtual data room scenario that requires a high level of security and privacy. For instance private equity funds and firms can safely share information about their portfolios and tax information with prospective investors via the use of a VDR. A virtual data room may also streamline contract review by incorporating features such as automatic redaction as well as document organization. This assures that PII will not be disclosed.