A virtual data room is a secure online repository for private documentation, typically used during the due diligence process of any business transaction. Today, with the advent of technology and the growth of remote working, they can be used throughout the lifecycle of a deal and increasingly for other corporate events such as fundraising, divestitures or business restructuring.
The top online VDRs offer strong security, with global compliance certificates as well as data controls. They should also provide a variety of reports that detail user activity, from what documents have been viewed to the frequency they have been downloaded or printed. This transparency will help data rooms comply with regulations like HIPAA and ISO 27001 and reduce the risk of leaks of sensitive information.
Finally good online VDRs include many features that help improve team communication. These include Q&A, FAQs annotations, comments and annotations on documents, instant notifications, and follow-ups. These tools enhance communication and aid teams in making better decisions.
When you are evaluating online VDRs search for providers that offer free trials of their software. These are a great tool to see if the platform is the one it claims to be and how user-friendly and intuitive it is for you and your team, as well as any third parties you plan to invite to the data room. Some providers also permit users to purchase licenses a user-by-user basis, which could be beneficial for businesses who plan to use their data room for more than one project.
