Storing and sharing documents online has become the new norm for businesses in most industries. Virtual data rooms are online repositories used by companies and businesses to store sensitive information. Having a secure data room is extremely useful for M$A transactions, IPO, fundraising, or joint venture.
With the increasing popularity of virtual data rooms, the marketplace is flooded with virtual data room providers. This makes it extremely difficult to determine which VDR is most suitable for your business needs. Luckily, finding the right VDR does not have to be daunting when you know which features are important.
In this article, we will look at some things that you need to keep in mind when seeking a virtual data room for your business.
Security
If are like most businesses, security is the major reason why you are looking to invest in a VDR. Not having security measures in place can put your documents at risk of hackers.
A data breach (you could look here to find out what it means) will not only result in loss of money but can also ruin your reputation, which can be damaging for an M&A transaction. You should not hire a virtual data room provider until you are sure that their virtual data room is completely secure.
A good tip is to ensure that the VDR is ISO 27081 compliant. The provider should also have SSAE 16 and ISAE 1302 third-party certifications as proof of high-quality security standards.
The virtual data room should provide a high level of security for your sensitive documents and mitigate the risk of data breach. A good data room should have high encryption and two-step authentification process to keep hackers at bay.
Another great VDR security feature is restricted view function. With this function, you will have control over who views your document and this prevents authorized viewing. You should also inquire if the provider offers viewer verification and dynamic watermarks features to prevent illegal copying.
Ease of Use
A good VDR should be easy to use and set up. Integrating new technology can be challenging especially if it is your first time. A user-friendly interface will make it easier for you to get a grip of all the important features of VDR so you can start implementing it as soon as possible.
It should be easy to integrate into your everyday operations and your team shouldn’t need a lot of training to familiarize yourself with it. Make sure that it is easy to upload and store files, organize and share documents, and invite users to your VDR.
Top-notch VDRs should also be customizable and include features like bulk upload, drag and drop, automated Q&A workflows, multi-device functionality, multi-language support, and the capability to sync folders from the cloud.
Otherwise, a platform that is not easy to use can lead to delays and longer time to complete transactions. This will negatively impact your team’s operational efficiency, causing unproductivity.
Control
A leading virtual data room should user management features that give you ultimate control over your data. Control is especially important if you will be sharing sensitive documents with third parties as it helps to keep your VDR private.
It should provide multiple levels of user permissions that let you control who can view, edit, or download the documents. You should also be able to restrict viewing to anyone that you don’t want to share the documents with.
Additionally, you should be able to restrict the viewing at different stages during the transaction or when the contract ends. This includes restricting who prints the documents or add watermarks.
Groups’ permission is another awesome feature that allows you as the owner of the data room to control different levels of permission and also manage in these fields. Besides, it should give you the ability to see what other users are doing in your VDR including when a user uploads a document.
Ease of Access
Other than having a user-friendly interface, a good virtual data room should also be easy to access. Basically, anyone who needs to have access to your documents should access the data room with ease.
You will avoid frustrations and complete the transactions and processes seamlessly when investors and other authorized persons access the data room fast and efficiently. Also, it is wise to ensure that the data room can be easily accessed on mobile devices.
This way, you can share your files and allow others to view them outside the office space. Your team can also work remotely and still ensure that things continue working smoothly.
Pricing
While this should not be the only thing to consider when looking for a virtual data room, VDR pricing can help you determine if you are getting value for your deal. When it comes to evaluating the pricing structure, it is important to enquire whether you will be charged per page or per megabyte (MBs).
The choice of pricing will depend on your deal. For instance, paying for MBs is more suitable if you intend to store a lot of text-based documents like written reports or spreadsheets. This method is a bit cheaper.
However, if the documents you intend to store in a VDR have a lot of image files and large graphics, then it is best to pay per number of pages.
The pricing may also vary depending on the number of users and available features. Whichever pricing method you choose, make sure to always read the contract clauses and check for hidden fees.
Although virtual data rooms can be expensive initially, your business will save a lot of money in the long run in terms of data protection, printing, delivery, and fuel.
Conclusion
These 5 factors will help you narrow down your choice for a virtual data room that complements your business needs. Also, make sure that you choose a reliable virtual data room provider that will give you a VDR that is valuable and meets your business needs. It also pays to ask for a free trial to test the software yourself before making any buying decision.
