Choosing a Virtual Data Room for Business

When you’re working sharing documents with clients investors, partners or customers is crucial. It’s crucial to secure your documents and communications. You’ll want to choose an online dataroom for your business that offers the security features you require 24/7 access to authorized users; two-factor authentication; timed access expiration and multiple permission levels; and IP-address-based access restrictions. Review the provider’s compliance certificates to ensure they match top security standards, such as SOC 1 and SOC 2. ISO 27001 and HIPAA.

VDRs are most commonly used in M&A transactions, where buyers need to review large volumes of confidential documents prior to closing a deal. The traditional way to do this was for buyers to travel (often by plane) to a secure location to review the hard copies of the documents. This could take days and increased the likelihood that the deal would fail due to delays or other issues.

VDRs allow the confidential documents to be reviewed from anywhere in the world This makes the process faster and increases competition among prospective buyers. This is especially crucial when dealing with companies in the life sciences industry which must share information about everything from HIPAA compliance and clinical trials to licensing and patenting IP.

Virtual data rooms can be used for fundraising, IPOs and corporate finance, insolvency, mergers and acquisitions, real estate transactions and asset sales, and litigation files. With the many possibilities for document sharing, it’s easy to understand why so many businesses turn to VDR providers.

virtual data room for business