How to Choose a Virtual Data Room?

Charlotte Miller

Updated on:

Given the wide variety of vdr on the market, it is difficult to decide on the best software. The most important thing is that the tool meets your business requirements.

If you need a provider that will ensure secure data storage, efficient collaboration, and convenient deal creation, check out the information in this article.

Basic Steps in Choosing the Best VDR

There are many factors to consider in choosing software. The main ones include:

  • identification of one’s own needs;
  • desired functions;
  • budget considerations;
  • comparing multiple vdr;
  • checking feedback from other users;
  • testing a suitable vdr.

For a better understanding, it is necessary to familiarize yourself with each criterion in more detail.

Identification of Personal Needs

When you choose a secure virtual data room, it is essential to realize what the provider has to offer. You should consider the needs of the business beforehand. Online data warehouse features that are used specifically for document storage may differ significantly from a provider’s ones that are designed for due diligence. This can affect the cost of using a virtual data room.

Top best questions to help you decide which one to choose:

  • In what cases will you need a VDR?
  • How much storage capacity will be needed?
  • Is there a need to use VDR outside of the company?
  • Do you plan to share sensitive information on the premises?
  • How many projects will you use in the VDR?
  • Are you looking for a VDR for the long term or short term?
  • Do you have a need to sign confidential documents in such a room?
  • What security measures are essential?
  • Do you need archives after deals are finalized?

If you provide clear answers to these questions, there will be no difficulty in selecting a data room. You can then proceed to the next step.

Desired Functions

Understanding the mandatory features significantly narrows down the choice of virtual data rooms. You have the opportunity to focus on the features that different providers offer. Find what suits the requirements of your project or business.

Basic features offered by modern virtual deal room software:

  • maximum security;
  • document management;
  • convenient use;
  • quality and round-the-clock customer support;
  • drafting answers;
  • questions and answers.

Familiarization with the main functions provides an opportunity to better understand the offered services. They are used to enhance a transaction or project.

Often VDR is required to securely share documents and manage sensitive files. In making a choice, you need to understand how much the provider simplifies the data management process itself for you. Let’s take a look at the main features:

  1. Bulk uploading. It is important for the user to be able to drag and drop and upload a large number of documents at the same time.
  2. Automatic indexing. If you have a large project, it will take a lot of time to manually organize the files that need to be uploaded to the virtual data room. If automatic indexing is provided, then all uploaded documents will be sorted automatically.
  3. Support for different formats. The more files a particular provider supports, the better you will not be limited in what types of files you need to upload.
  4. Availability of full-text search. If OCR technologies are enabled, they provide the ability to find what you need in any document that is in the VDR. This feature will be especially useful if you manage large projects and conduct complex financial transactions.

These are the basic options that a virtual data room should have.

Document Security

This is the main and crucial factor. To ensure the protection of confidential data, you should pay attention to such security features:

  1. Dynamic watermarks. These provide the ability to display personal labels on top of uploaded documents.
  2. Redaction. The ability to darken certain areas of important documents to increase privacy.
  3. Fence View. Increased protection of sensitive data from unwanted viewing. Optionally, a corresponding mode with some restrictions can be enabled. Such a feature exists and users can view only the accessible part of the document.
  4. Remote Shred. The administrator has the ability to revoke access rights to a document even after it has been fully downloaded. In this way, full control over documents and files is obtained.

Basically, the deal desk has to control these processes.

Access Security

One of the best benefits is the ability to manage access rights for authorized users. This is a major feature that physical data storage cannot compensate for. Only those who can find such features in salerooms for negotiation have full control:

  1. Multi-factor authentication. Before entering the virtual data room, the customer must pass multiple authentication. Modern providers predominantly offer two-fold authentication.
  2. Detailed access rights. The best VDR provides the ability to set the administrator as the person who can view, download, print and manage each file or document. This way, it’s easy to prevent third parties from gaining access to sensitive information.
  3. Time Restrictions. This access control feature provides the ability to restrict access to specific ip addresses, for a specific period of time.
  4. Access Control. Administrators have the ability to set security policy rules, create strong passwords and determine the session duration for each user.
  5. Convenience. Choose virtual deal room solutions that will be easy and convenient to use.

When choosing the best virtual data room, you need to think about who will use it and what criteria it should meet. To provide the best user experience, make sure that the providers take care to include all the necessary features.

Modern data rooms have mobile access, so you can continue working on documents from any gadget. There is no need to continue working on your personal computer or carry your laptop with you all the time. The most important thing is to meet the security requirements. It is the main reason why customers choose this service.