What to Look for in an Online Data Room
Online data rooms are a great way to manage, store and share documents. They are perfect for all kinds of projects which require sharing sensitive information with third parties, like due diligence in M&A transactions or fundraising. The life sciences sector is a good example. It has to deal with intellectual property that requires careful handling. VDRs make it simple to share all documents with investors or clients in an online environment that is secure, so they are able to easily locate and read the important information.
To ensure the security of sensitive files, choose a vendor that offers robust security features, including multi-factor authentication and the option of accidental deletion redemption. Look for a “View As”, which allows users to see their own access rights prior to logging on. Certain vendors offer a range of deployment options to allow you to set up a data room for the specific project or the entire user group.
A reliable online data space will have a simple, intuitive configuration that is as clear for the CFO as it is to an entry-level accountant. It should have a flexible deployment, single sign-on across all projects, and the option for users to modify the logo of the data room and terms of service as well as the overall design. Choose a company that allows you to pay per page or by the number of users, ensuring there are no surprises in the invoice.
A VDR with a smart search feature will allow you to quickly find a file within the platform, and indexing capabilities aid administrators in organizing the room’s structure. A lot of providers offer Q&A functions that allow administrators to efficiently deal with questions from counterparties.
