Sharing documents with clients, investors, or partners can be essential to your business. However, it’s equally important to ensure the security of your documents and communications. You’ll want to choose a virtual dataroom for business with the security features you require such as 24/7 access to authorized users and two-factor authentication, timed access expiration, multiple permission levels; and IP address-based access restrictions. Check the provider’s certifications to ensure that they meet the highest security standards like SOC 1, SOC 2, ISO 27001, and HIPAA.
VDRs are used most often in M&A transactions, where buyers need to review large volumes confidential documents before closing a deal. The traditional method for doing this was to have buyers travel (often via plane) to a secure location to review the hard copies of the documents. This took days and increased the chance that the deal would be cancelled due to delays and other issues.
VDRs allow confidential information to be viewed from anywhere around the world which increases speed and the competition between buyers. This is especially crucial when dealing with companies in the life sciences industry, which need to share information about everything from HIPAA compliance and clinical trials to patenting IP licensing and licensing.
Virtual data rooms can be used for fundraising, IPOs and corporate finance, insolvency, mergers and acquisitions as well as real estate transactions and asset sales, as well as litigation files. With the wide range of options for sharing documents it’s clear why so many businesses turn to VDR providers.