Virtual data rooms are vital for any business dealing with sensitive data. The most popular use for these tools is in financial reports verification M&A transactions to safeguard crucial data from unauthorized access during due diligence processes. It’s not only M&A that requires a high level of protection. Intellectual property, such as research results, patent-protected goods, and more, are often involved in projects that require documentation.
When choosing a data room ensure that it’s appropriate for the purpose and offers the necessary features to meet the needs of your business. You should look for an option that allows you to test their platform and ask questions prior to paying the subscription fee. Also, make sure the price is reasonable and is based on the tools they provide.
Look for a virtual data room that comes with a solid security system to ensure only authorized users are able to access the data. It is crucial to have a strong two-factor authentication (2FA) system in place to block unauthorised sharing. A remote shred feature which erases files downloaded after an admin has revoked access is another excellent feature.
The most reliable data room software providers can restrict access to particular documents, or even a complete folder within the document. They can also establish a time limit for documents to deter unauthorized downloading. Administrators can also place custom watermarks on files to discourage users with questionable intentions. Additionally, they should be able to support most commonly used file formats, including PDFs and XLSXs.