How to Choose a Data Room Service Provider
When a company is required to quickly gather and review large amounts of information to make crucial business decisions, such as M&A deals or fundraising rounds it can be difficult to sort through tens, or even hundreds of thousands, of documents. This is where a virtual data room (VDR) can come in handy as it provides a secure digital environment to store and share the information which makes it accessible to all stakeholders.
While some VDRs might appear similar on first glance but it’s essential to know what you’re looking to accomplish from using the VDR so you can select the best one for your needs. You can then stay clear of the maze of features and choose the one that will allow you to complete your task quickly and with minimal risk.
The key features include granular permissions, a dynamic technology to watermark files that includes unique identifiers as well as datestamps for each one, a report on the activity of users, and the capability to be notified whenever files are modified. Other important features include the ability to customize your workspace to reflect your company’s identity, including logos and colors schemes and invitation emails, and to add conditions and terms as well as watermarks, headers and footers to downloaded and uploaded files.
Look for a service provider who offers free trials and flexible pay-as you-go models without long-term contracts. Find a company that recognizes the regulatory requirements that may be needed for certain industries and incorporates that knowledge into the software. Features like audit trails and version control, and the ability to prove that users have viewed and read risk warnings are all aspects you should be looking for.
