In the past, companies went to great lengths to keep their most private files in a secure location. A misplaced document could lead to lost opportunities or costly lawsuits. In today’s digital age companies can safeguard sensitive data by keeping them in storage and sharing them with a secure virtual data space.
Virtual data rooms are software solutions that facilitate sharing of documents during important business transactions, like M&A, fundraising, IPOs and due diligence. They are a more efficient and efficient method to share and exchange documents than traditional cloud storage solutions.
VDRs offer greater security as over other cloud storage solutions. The best virtual data rooms feature multiple layers of sophisticated encryption technologies and access control methods which make them a solid digital defense for your sensitive information. They also offer granular permission settings, screen-only modes, and blocking to stop downloading and access to your data that is not authorized. Many VDRs also offer tools for reporting compliance to assist you in strengthening your position during negotiations and closing deals while demonstrating compliance with the regulatory requirements.
A life sciences firm is an example. It may require sharing confidential information of research findings or patients with several parties. A VDR can facilitate collaboration and guarantee privacy for all parties involved while keeping documents organized in an easily navigable folder structure with standardized file names.
Similarly, oil and gas companies need to collaborate with partners from outside on a project but need to ensure strict data security to meet compliance. A VDR equipped with built-in document reader, multiple layers of data encryption and backups 24 hours a day, virus scanning and redundancy for data centers can reduce M&A risk, speed up deals and increase productivity.