Virtual data rooms are utilized by businesses to share sensitive documents during the due diligence phase of a deal. Life science and technology companies are among the most frequent users of VDRs, however any company with proprietary information will benefit from the robust tools that VDRs can provide to share documents and streamline the due diligence process, allowing you to close deals quicker.
However there are a few differences. Not all VDRs are created equal and pricing structures vary significantly between providers. It is important to determine what functions you might require your VDR to fulfill and then choose the one that offers the capabilities you require at a price-saving fee. Some providers charge extra for features that aren’t needed, while others charge per page or extra user charges to support large transactions.
When choosing when choosing a VDR be aware of how it will be easy for you to upload and download documents as well as set up granular security for each user; change access during negotiations; and shut down access instantly if a deal is blown. Additionally, look for a secure encryption of data during transit and at rest which protects files from hackers. Also, take note of the security certifications that the company displays and whether or not they are in line with the industry standards.