Virtual data rooms are an essential tool for many business operations. From M&A transactions and venture capital transactions, to fundraising and regulatory compliance, an online data room can be a beneficial tool. The right VDR will change these procedures, making them easier to perform, faster, and more efficient. However, selecting the right data room that meets your specific needs can be a difficult task.
First, look at the features of a company to make sure they match your needs. Due diligence is the most common usage of a VDR. Therefore, you will want to choose a platform that offers an optimized workflow that is simple to set-up and simple to configure. Choose a platform that displays an NDA or Terms of Access prior to allowing access to the documents. It should also offer indexing of files that will help you identify the correct version of the document without having to search through the entire folder hierarchy.
Be aware of the security of a provider’s data centers and their own. Select a company whose data centers are certified to meet certain standards, such as SOC 1 / SSAE 16, the ISAE 3402 standard, FISMA DIACAP and FedRAMP. Look for a platform with industry-standard file types, distinct watermarking and an electronic lock to track the documents viewed.
Some traditional providers charge per document or per page which can be expensive in the event that you need to share a large number of documents. You should select a data room with flat-rate pricing, or at a minimum one that is transparent about their pricing model.