Cloud storage applications and free file sharing services are excellent for sharing files, but they aren’t secure enough and don’t have the access rights required for sensitive data exchanges such as M&A due-diligence or capital raising. These tools lack the professionalism needed to impress LPs and investors, and do not offer the flexibility that dedicated data rooms offer.
While the cost for high-end virtual data room software might seem expensive It’s worth it to ensure your confidential data is safe during any transaction. Smaller businesses can save money using a VDR, whereas large corporations utilize premium features for M&A due diligence or capital raising.
Choosing an VDR provider that offers complete security features will ensure that your data is safe from cyberthreats and physical theft even after the project has been completed. For example data rooms that include fence view capabilities allow admins to remotely lock and erase data from stolen or lost devices. Furthermore, physical data rooms are protected with 24-hour surveillance and access control policies that are restricted.
Many VDR providers also provide advanced customer support that can answer questions and assist users with setting up the solution. Support via email is the most commonly used however some also provide concierge services too. Additionally, many vendors allow you to modify the interface as well as the terms of service and other visual elements that align with your brand. This makes it easier for everyone involved to understand and follow the protocol throughout the data exchange.