How to Choose the Best Virtual Data Room
A virtual data room (VDR) is a secure file and document storage and distribution solution. Also known as deal rooms, these solutions are widely used during mergers and acquisitions, allowing companies to securely share proprietary or sensitive information throughout the process without providing direct access to company systems or resources. However, they are also useful when raising funds from investors, forging strategic partnerships, communicating with board members, and working with consultants.
Since they are a vital part of critical business dealings, selecting the right solution is essential. Here’s a look at how to choose the best virtual data room when the need arises.
Define Requirements and Budget
Before you begin exploring providers, it’s best to define your requirements clearly. Identify the intended use, types of data or files being stored, amount of storage space required, number of users who need access, and similar details.
After that, setting a budget is also a must. VDR solutions can run the gamut when it comes to pricing. By knowing your budget, you can focus on services that won’t break the bank from the beginning, streamlining your search.
Research Providers and Identify Key Features
Once you have a general idea of what you need in a VDR solution, it’s time to research available providers. In most cases, you want to begin by focusing on features.
Typically, security capabilities are the most crucial features in the equation, as the point of a virtual data room is to protect proprietary or sensitive information. Robust access controls, two-factor authentication, encryption, download restrictions, and watermarking all play a role when you’re looking for the best virtual data room on the market. Activity logging and analytics are also beneficial, as these allow you to monitor user activity for anomalies.
Document management and search features are similarly critical. Along with ensuring the space remains organized, it allows users to find specific words and phrases, filter files by type, and otherwise get the information they need quickly.
Finally, factor in customer service and customer satisfaction. Generally, it’s best to focus on VDR providers with strong reputations in these areas, as you’ll usually have an easier time getting the assistance you need should an issue arise.
Try a Trial Run
A free trial of a virtual data room can help ensure that any advertised features or capabilities genuinely meet your needs. As you engage with the VDR solution firsthand, you can essentially use it in the way that you intend. Plus, you can explore the security mechanisms to make sure they provide enough protection and control or test search and filtering capabilities to check the ease of use.
With a trial run, you can typically bring in multiple users, too. As a result, you can see how people with varying degrees of tech-savviness navigate the platform, allowing you to evaluate the learning curve before committing.
Top Provider Options
Most of the top VDR providers meet the needs of a wide variety of organizations, offering robust toolsets and strong security, as well as solid customer service and usability. If you aren’t sure whether a virtual data room provider can meet your needs, the list below can serve as a solid starting point:
- Ansarada
- Datasite Diligence
- Digify
- DocSend
- Firmex
- iDeals
- ShareFile
- ShareVault
- SecureDocs
