As a substitute for the traditional physical data room, virtual deal rooms have become the standard software to share sensitive information. These platforms are used to assist due diligence in mergers and acquisitions, as well as fundraising and IPOs. However the success of this industry is contingent on the use of effective online security protocols. Cyber-attacks and data breaches can cause irreparable damage to businesses reputations, as well as their relationships with investors and customers.
One of the most important aspects to take into consideration when choosing the right VDR is its security features. Make sure you choose a platform that offers granular permission settings and multiple layers of authentication (e.g. Two-factor authentication, single sign on and IP restriction are all ways to protect your private data from unauthorized devices. Idealerweise you would want to use VDR would also include digital rights management policies (DRM) that can be applied to specific documents. This stops unauthorized users from copying and downloading data.
When evaluating different VDRs Be sure to look on their websites for their security pages. This will give you a sense of how well the company takes security seriously. It should also let you know whether they have a dedicated team for this purpose.
Another thing to think about is whether or not the VDR can be configured to create separate workspaces to work on different projects. This is essential to ensure that projects do not overlap or divulging confidential information. It is also crucial to ensure that the different projects have distinct names so that they can be differentiated from one another in the VDR.