Virtual data rooms, also known as VDRs, are online storage facilities which allow for the sharing of sensitive documents and files during a high-risk projects. This includes M&A due diligence, real estate contracts or fundraising. VDRs focus on data security with measures such as strong encryption of data as well as user-specific permissions that can be customized and easy access controls.
This is a significant benefit over traditional file sharing platforms like Google Drive, Dropbox or your intranet. These platforms can expose sensitive information to hackers and put your business at risk. VDRs also allow traceability, which allows administrators to track who has accessed which documents and when (as as long as it’s allowed under the laws protecting data). This can prevent accidental disclosures, and prove compliance in audits and regulatory checks.
Many companies have unique business needs that they have to address when choosing the best VDR. The best place to begin is assessing the sensitivity your documents and the volume of documents you’re dealing with. If you’re dealing with a small amount of non-sensitive documents, you may not need the advanced security and collaboration features offered by the VDR.
Budget and time are also important factors to consider. A high-end VDR will significantly reduce the amount of work required to complete a project, saving you precious resources and reducing costs. Many VDRs also provide flexible pricing plans so that you can pick the plan that best meets your requirements. And with a free trial you can test a VDR before committing to one.