Choosing a Virtual Data Room for Business

When you’re running a business, sharing documentation with clients investors, partners or customers is crucial. But it’s also vital to ensure the security of your documents and communications. When choosing a virtual information space for your business, you’ll want to look for a service that offers the security features you need such as 24/7 access for authorized users Two-factor authentication, timed access expiration, different access levels and IP-address-based access restrictions. Check the provider’s certifications to ensure that they meet the highest security standards, such as SOC 1, SOC 2, ISO 27001 and HIPAA.

The most common use of VDRs is M&A deals in which buyers need to examine large quantities of confidential documents prior to closing the deal. The usual method of doing this was to have buyers travel (often via plane) to a secure location to review the hard copies of the documents. This process took days and increased the chance that the deal would fail due to delays and other issues.

VDRs enable confidential documents to be viewed from any place in the globe which speeds up and boosts the competition between buyers. This is particularly crucial when dealing with life science companies which need to share data about everything from clinical trial data and HIPAA compliance to patenting and licensing IP.

Virtual data rooms can be used for fundraising, IPOs and corporate finance including insolvency, mergers and acquisitions as well as real estate transactions and asset sales, as well as litigation documents. It’s easy to see why so many companies switch to VDR providers.