Virtual deal rooms are standard software that can be used to share sensitive information as an alternative to the physical data room. These platforms are often utilized to facilitate due diligence in mergers and acquisitions, fundraising, and IPOs among other business transactions. The success of this industry, however, depends on a strong security system for online transactions. Data breaches and cyber-attacks can cause irreparable damage to companies their reputations as well their relationships with customers and investors.
One of the most important factors to think about when choosing a VDR is its security features. Choose a platform that provides granular settings for permissions, multiple layers of authentication (e.g. Two-factor authentication, single sign on and IP restriction are all ways to protect your confidential files from unauthorized devices. Idealerweise you would want to use VDR could also incorporate digital rights management policies (DRM) which can be applied to specific files. This will stop unauthorized users from copying and downloading your data.
Go to the security page on their websites before you are evaluating VDRs. This will give you an idea of whether the company takes security seriously. It should also reveal whether they have a dedicated team for this purpose.
A VDR that can create separate workspaces is a crucial feature to consider. This is essential to ensure that projects do not overlap or leaking confidential information. It is important to give each project a distinct name so that they can be distinct in the VDR.