How to Choose a Data Room

A virtual data room is a vital tool in a variety of business operations, from M&A deals and venture capital transactions to fundraising and compliance with regulatory bodies. The right VDR will revolutionize these processes, making them more efficient to use, quicker, and more efficient. The choice of the right data room can be a difficult task.

Before you do that, take a look at the features of a provider to make sure they match your requirements. For instance due diligence is among the most popular uses for the use of a VDR, so you’ll want to find a platform that is quick and easy to set up, with an optimized workflow. You should look for a platform that displays a NDA or Terms of Access prior to allowing access to the documents. It should also include indexing of the files to help find the correct version of the document without having to go through the entire hierarchy of folders.

It is also important to consider the security of a company and their data centers. Choose a provider that has data centers certified to meet specific standards, including SOC 1/SSAE16/ISAE 3402, FISMA, DIACAP, and FedRAMP. Find a platform that supports industry-standard file types, unique watermarking, and an electronic leash to track the documents viewed.

Some traditional providers charge per document or per page which can be expensive when you have to share multiple documents. You should select an online data room that has flat-rate pricing, or at a minimum one that is transparent about their pricing model.