When you’re working, sharing documentation with clients as well as investors, partners or clients can be crucial. It’s crucial to secure your documents and communications. You should select a virtual dataroom that has the security features you need such as 24/7 access to authorized users; 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, such as SOC 1, SOC 2, ISO 27001 and HIPAA.
The most commonly used use for VDRs is M&A deals, where a buyer needs to go through large volumes of confidential documents before closing the deal. The usual method of doing this was for buyers to travel (often by plane) to an unsecure location to review the hard copies of the documents. This took days and increased the likelihood that the deal would fall through due to delays and other issues.
VDRs permit confidential documents to be viewed anywhere in the world, which makes the process faster and boosts competition among potential buyers. This is particularly important when dealing with companies that are in the life sciences field, which need to share information on 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 such as insolvency, mergers & acquisitions as well as real estate transactions and asset sales, as well as litigation files. It’s easy to understand why so many companies switch to VDR providers.