For companies that need to share sensitive data with third-party or external partners, you should choose a safe data room with an easy process to set up and manage data rooms. A data room permits you to add documents, auto-expire or delete and track who has been viewing the files, allowing you to monitor compliance and reduce liability.
Data rooms are usually used to conduct due diligence in M&A transactions. However, they are increasingly used for other transactions such as restructuring, fundraising, and internal file sharing. There are numerous virtual datarooms on the market. Each comes with different features and prices. It can be difficult to choose the right virtual data room that meets your requirements however there are some key factors you should consider when making comparisons between providers.
First and foremost, you must consider the storage capacity. This will depend on the type and size of files you plan to upload and save in your data room. For instance, text documents will require less space than high-res images and technical drawings.
You should also determine if your provider provides basic security features like multi-factor authentication or granular access rights for users. iDeals, Datasite and Citrix are three vendors that come highly recommended for their access security features, with iDeals with more advanced capabilities, such as user security impersonation remote wipe, mobile device management.
Annotation tools are also a consideration, particularly for due diligence projects. Choose a vendor that offers dynamic and static watermarking that is applied at the level of folders and documents as well as screen shielding.