How to Choose a Data Room

A virtual data room is a vital instrument for a variety of business processes, from M&A deals and venture capital transactions to fundraising and compliance with regulatory bodies. The best VDR will transform these processes by making them faster, easier, and more efficient for everyone involved. However, picking the right data room for your particular requirements can be a difficult task.

Take a look at the features offered by a service to ensure they meet your needs. Due diligence is a typical use of the VDR. Therefore you must choose a platform that offers an optimized workflow that is simple to set-up and simple to configure. Also look for an option that displays an NDA or Terms of Access before allowing access to files and offers file indexing so it is easy to locate the correct version of a document without having to go back through the entire structure of the folder.

You should also think about the security of the provider and their data centers. Select a company whose centers are certified to meet specific standards such as SOC1/SSAE 16, ISEA 3402, FISMA DIACAP and FedRAMP. Choose a platform that has industry-standard file types, unique watermarking and an electronic leash to track the documents you’ve viewed.

Some traditional providers charge per page or document, which can be costly in the event that you need to share numerous documents. Therefore, you should pick the data room that provides fixed-rate pricing or is at the very least transparent about the pricing model they use.

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