Choosing a Virtual Data Room for Business

Sharing documents with investors, clients or partners could be crucial to your business. It is essential to secure your documents and communications. When choosing a virtual data room for business, you’ll vdrs want to look for a service that offers the security features you need to have 24/7 access to authorized users two-factor authentication, timed access expiration, multiple permission levels, and IP-address-based access limitations. Check out the provider’s compliance certifications to ensure they match top security standards, such as SOC 1 & SOC 2. ISO 27001 and HIPAA.

VDRs are most commonly used in M&A transactions, where buyers need to examine large volumes of confidential documents prior to signing a contract. The standard method of doing this was to have buyers travel (often by plane) to a secure location to review the hard copies of the documents. This could take days and increased the possibility that the deal could fall through due to delays and other issues.

VDRs permit confidential documents to be viewed anywhere around the world which speeds up and boosts competition between buyers. This is particularly important when dealing with companies in the life sciences industry that must share details on everything from HIPAA compliance and clinical trials to licensing and patenting IP.

Other uses for virtual data rooms include fundraising, IPOs, corporate finance mergers and insolvency, real estate transactions, litigation and asset sales files. With the wide range of possibilities for document sharing, it’s clear why many businesses choose to turn to VDR providers.