As an alternative to the traditional physical data here room, virtual deal rooms have become standard software to share sensitive information. These platforms are widely utilized to aid in the process of facilitating due diligence in mergers and acquisitions, fundraising and IPOs among other business transactions. However, the success of these platforms is contingent on the use of effective online security protocols. Cyber-attacks and data breaches can cause irreparable damage to companies reputations, as as their relationships with customers and investors.
Security features are among the most important things to take into consideration when selecting the best VDR. Make sure you choose a VDR that has multi-layer security, granular permissions and multiple layers (e.g. Two-factor authentication, single sign-on and IP restriction are all ways to protect your private information from being accessed by unauthorized devices. Idealerweise the VDR should also contain digital rights management policies (DRM) that can be applied to specific documents. This stops unauthorized users from copying and downloading data.
Check the security page on their sites when you are looking at VDRs. This should give you an idea of how seriously the company takes security seriously. It should also tell you whether they have a dedicated team for this purpose.
Another aspect to be considered is whether or whether the VDR can create distinct workspaces for different projects. This is essential to ensure that projects do not overlap or revealing confidential information. It is essential to give each project a unique name to allow them to be distinct in the VDR.