For any business dealing with sensitive information A virtual data room is a must-have tool. The most frequent use of such tools is in M&A transactions to safeguard crucial data from unauthorized access during due diligence processes. But it’s not just the M&A process that requires sophisticated protection — intellectual property like patents, research results, and many more are commonly involved in numerous projects that require access to documents.
When selecting a data space ensure that it’s appropriate for your company and has the features you need. You should look for a provider that allows you to test their platform and ask questions prior to paying an annual fee. Also, ensure the price is affordable and based on what tools they offer.
Look for a virtual room that has a robust security system to ensure only authorized individuals have access. A strong two-factor authentication (2FA) system is crucial to stop sharing that is not authorized, and a remote shred option which erases downloaded documents when an administrator removes access an excellent feature.
The best data room software providers can restrict access to certain documents or even a folder within a document. They can also set a time limit for documents to deter unauthorized downloading. Administrators can also place custom watermarks to files to deter people with questionable intentions. In addition, they will be able support the majority of common file formats including PDFs and XLSXs.