Given the recent increase in cybercrime, it’s more crucial than ever before for businesses to protect their information and confidentiality when sharing documents. Many companies make use of virtual data rooms to manage their information and conduct important corporate transactions like capital raising rounds and M&As. When selecting a Data Room for confidential data, it’s important to examine the company’s past and track record.
Due diligence is the primary usage case for a data room. It is required for the selling side to have a central repository to look over documents to be able answer questions from prospective investors. This ensures only the right people can review the information, and keeps unauthorized parties from having access on sensitive data like business plans, financial forecasts or research results. In addition to standard features like secure connections with multiple users and password protection, a digital data room could also include additional security features, such as watermarks that are visible when scanned or printed, and the ability to designate NDAs for each project.
It is also crucial for a company to understand how the price of the digital data room fluctuates with different circumstances and to ensure that it has an articulated pricing structure with no hidden extras. A business should also look at the tools each provider provides in relation with the price they pay. Some providers, for example allow several user groups, while some provide additional services such document translations and customer support.