A virtual data room, or VDR, is an online repository that facilitates the sharing of sensitive files and documents during high-risk tasks. This includes M&A due-diligence, real estate contracts or fundraising. VDRs are affixed to security by implementing measures like strong encryption of data, flexible permissions for users and simple access control.
This is an advantage over other file sharing platforms such as Google Drive, Dropbox, or your intranet. These platforms can expose confidential information to cybercriminals, putting your business at risk. VDRs also provide the ability to trace, allowing administrators to track who has accessed which documents and when (as long as it’s permissible under the laws protecting data). This can help avoid accidental disclosures and demonstrate compliance during audits and regulatory inspections.
Many businesses have specific business needs they must consider when selecting the best VDR. Start by evaluating how sensitive your documents are as well as the amount of documents you have. If you’re dealing with small volumes of documents that aren’t sensitive, then you may not require the advanced security and collaboration features that are available with the VDR.
Another aspect to consider is your budget and the amount of time you can spend on the project. A high-quality VDR can cut down on the amount of time and resources needed to finish a project, saving you money and valuable resources. Many VDRs also provide flexible pricing plans, meaning you can choose a plan that suits your requirements. Also, with a free trial, you can try out a VDR before making a decision to purchase one.