What are Virtual Data Rooms (VDR)?

If you are interested in using Virtual Data Rooms (VDR), here is what you should know. A VDR is an online repository of information that can be safely stored and distributed. In many cases, VDRs can be used for loan syndication, venture capital transactions and to facilitate the due diligence during a merger and acquisition and virtually to conduct entire deals.

Because of security, costs and efficiencies, physical rooms have been replaced with VDRs. It would be very difficult to retrieve, gather and sort thousands of pages of highly confidential information of events like tenders, mergers and acquisitions and fundraising with physical rooms. VDRs are used as a secure location to store and share information with third parties. VDRs can control who gets to see what and when and this can minimize risks, and it can expose unauthorized usage.

How Can VDRS Improve Business?

Today, businesses have turned to VDRs because they have revolutionized transaction processes. VDRs provides 24/7/365 access from any device and any location with internet, data management and storage thereby saving the company time and money. Major deals can be made expeditiously without risks or pitfalls. VDRs provide a secure area, whether it is in an office or conference room. They can provide online due diligence process, which is simply cooperation between parties, with VDRs you can conduct the entire deal in one setting. 

How Can VDRs Help Small Business?

VDRs are not just for large companies. Providers can offer a vast number of instruments to fulfil the requirements of small businesses. Running a successful small business means that you’re likely to get proprietary information and trade secrets which you will want to protect to stay competitive.

Firmex is a great option for small businesses because they simplify the process. VDRs can be intimidating and complex. To put it simply, a VDR is an intranet. Many companies utilize the intranet to give employees access to the company shared information. The extranet is a website whereby the user can use a secure log-in to access data, and they can be accessed through the internet. The data usually is confidential, and the company can put restriction on the data. Virtual Data Rooms enables the interested parties to confidentiality view information in a controlled environment. The advantages of Virtual Data Rooms are security, the distribution and storing of secure data and controlling access to copying, viewing and printing. 

VDRs Ultimate Security

Security is the ultimate feature of Virtual Online Rooms. The provider you choose should have accredited certifications or credentials that are trustworthy. They should have rights management, which means you decide who has the right to view documents, make changes and print documents. With the enhancement, you will know who accessed information, when, at what location and for how long. This information is vital if there is a data leak. You also should be cognizant of employees who exited the company, whether it is a willing on not. Secure log-in must be kept secure.

Tips in Choosing a VDR Provider

There are lots of VDR providers available, and it can be rather tricky for you to decide which one is right for your company. Below are tips that should help you choose the one that fits your business needs.

  • First, decide which features are required for your project.
  • Decide what information is required from VDR.
  • Read reviews from each provider. You need to know if they are reliable and are they a fit for your business. 
  • Take advantage of the trial offer. Most VDR providers offer a 30-day free membership, and they offer a 60-day trial or a 90-day trial.
  • Choose only the VDR provider that offers 24/7/365 support.
  • Select a provider who has experience in facilitating complex financial transactions, such as IPOs.
  • Research to find a provider who does the work in-house. For security purposes, outsourcing management processes and data hosting to a third party is not recommended.

Take advantage of the below features offered by most providers. 

1. Document Security: This feature includes automatic backup, Data encryption, dynamic watermarks, Print Screen, button disable function and restriction on time and IP. 
2. Access Security: This feature offers log-in authentication for multiple users, management for your mobile devices and account theft preventions. 
3. Functionality: This feature provides questions and answers (Q&A), activity tracking and MS Office Integration. The activity tracking provides audit log and bulk uploads.
4. Usability: This platform is suitable for beginners and professional. It has features that are important to the end user, and they are an intuitive interface, advanced search option and easy to understand functions. 
5. Real-time reporting capabilities: This feature offer audit logs and tracking.

In addition, you should find a provider that can customize the VDR to your company needs. Finally, do not forget to ask the provider what bandwidth the platforms are offering.

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