Virtual data rooms are crucial for any business dealing with sensitive data. These tools are commonly employed in M&A transactions to shield important information from unauthorised third parties during due diligence. However, it’s not just the M&A process that requires sophisticated protection – intellectual property like patents, research results and more are often involved in numerous projects that require access to documents.
When choosing a space for data be sure it is fit for purpose and provides the essential features you require to meet your business needs. It is best to choose an option that allows you to test their platform and ask questions before you pay the subscription fee. Also, ensure the price is affordable and based on the tools they provide.
Look for a virtual room with a strong security setup to ensure only authorized individuals have access. A secure two-factor authentication (2FA) system is crucial to stop sharing that is not authorized, and remote shred which deletes downloaded files once an admin revokes access is also a great feature.
The most trusted data room providers will be able to limit access to a specific document or even an entire folder within a specific document. They can also impose an expiration date on documents to block downloads by unauthorized users, and they’ll allow administrators to apply custom watermarks on files to hinder dubious intent from users who are only temporary. They will also be able manage the most popular formats of files, including PDFs and XLSXs.