Virtual data rooms are crucial for any business dealing with sensitive data. These tools are primarily used in M&A transactions to guard crucial information from unauthorized third parties during due diligence. It’s not just M&A that needs advanced protection. Intellectual property, including research results, patent-protected goods and many more, are often included in projects requiring documents.
When selecting a data space make sure it is suitable for your company and includes the features you need. It is best to choose a provider that allows you to test their platform and ask questions before you pay a subscription fee. Also, ensure the price is affordable and based on the tools they provide.
Choose a data room with a robust security feature set to ensure that only authorized users have access. A robust two factor authentication (2FA) system is crucial to stop unauthorised sharing, and remote shred that erases downloaded files when an administrator revokes access is an additional benefit.
The top data room software providers will be able to restrict access to particular documents or even a folder within the document. They can also establish a time limit for documents to deter unauthorized downloading. Administrators can also put customized watermarks to documents to discourage users with dubious motives. In addition, they should be able to support all common file formats, such as PDFs and XLSXs.