As a secure way to conduct due diligence procedures for M&A, investments, and loans, the virtual data room is an invaluable tool for businesses.
It meets the increasing demands for business conducted over long distances by allowing the safe transfer of sensitive information. Many clients have started requesting VDR sharing over email or cloud-based programs, which lack the cybersecurity measures that make VDR’s so successful.
However, the broadening market of the virtual data room is being filled with many competitors. You won’t know which VDR to choose if you don’t have experience using a host before.
In this article, we provide you with some advice on picking the right one for your business. Here are the basic factors to consider when looking for your VDR.
Something that might take the lead in determining your ideal VDR is its compatibility with your business. This includes:
- Type and size of documents you will be uploading
- Languages used by your company and its interacting parties
- Platforms on which the VDR may be used
For example, if you’re on the go a lot and you favour viewing business matters on your phone or tablet, look for a VDR that is mobile-friendly.
A more general way to estimate whether a data room will mesh well with your needs and intended use is to see what other organisations use it. For example, Firmex.com works with a wide range of industries, including biotech & pharma, investment banking, and law. Other VDRs may be more targeted towards other niches.
Flexible Price Plans
Depending on your individual needs, one VDR’s payment model may suit you better than another’s.
Let’s say you’re an entrepreneur running a small business, and you only require this data room for one fundraising project. You won’t need a year-long payment plan.
On the other hand, if you will be using this VDR to maintain and share your organisation’s documents regularly, look for a rate that offers a discount on continued billing.
Among the top VDRs out there, some might charge either a high or more moderate rate for one-time use. While some data rooms charge per page, others charge based on a monthly subscription.
Luckily for you, many offer free trials, so if you’re not positive what features will work best for your situation or how much that VDR might be put to use— test it out.
One of the virtual data room’s main goals is to offer a higher level of security than the traditional document sharing platform. Each VDR host will use different methods to ensure your company’s data’s security and integrity, e.g., encryption, backup, and IP restriction. Look for a data room that is compliant with basic legal procedures for areas like medical confidentiality.
Efficient Customization Tools
A special feature of some data rooms is the ability to customize it with your branding. This can be a nice touch, depending on the size and scope of your company. It’s one way to impress clients and establish control in the room.
The increased demand to go virtual and share sensitive information in secure systems might seem intimidating at first. However, switching to a data room is a safe investment. Not only will it protect your company’s sensitive data, but it will make your clients feel more secure.
When thinking about a VDR’s compatibility with your company’s needs, remember that there’s no “best VDR” room. Instead, there’s a VDR that best matches your goals.