Virtual Data Rooms are online solutions that can fully replace physical storage for businesses. They act not only as a highly secure place to store sensitive documents but also as a space for transactions and due diligence. The VDR markets are overflowing with supply and demand, as companies have appreciated the capabilities of this solution. Now they are used in every industry, regardless of the business size. This article will highlight the key benefits of VDRs that will increase the efficiency of your business.
VDR ensures powerful data protection
A virtual data room’s initial and core capability is to be a place where companies can safely store sensitive documents. VDR offers military-grade protection and provides security against both external and internal threats. These are licensed software programs that have full authority to handle sensitive data. They provide features such as:
- Data encryption -protects against data leakage during document exchange
- Double authentication -protects login and requires double identity confirmation when logging in
- Watermarks -protect copyrights, very useful for storing intellectual property and presentations
- Remote destruction -allows administrators to remove VDR data from a third-party device at any time
- Detailed access permissions – allows you to regulate user access to documents at different levels. You can prohibit copying, printing, editing, forwarding, and screenshotting the document
- Continuous backups – ensure that you can restore your data no matter what happens
Data Room easily handles complex transactions such as due diligence and mergers and acquisitions. With VDR, the speed of closing a transaction has increased significantly. This is thanks to efficient organization and document review tools. You can automatically download and index many documents, and the space supports all file types virtually. Smart search will allow you to find the document you need by entering a single keyword. In addition, the document viewer will enable you to move from paper to document more comfortably, saving a lot of effort and time.
VDR significantly reduces your expenses
Maintaining a virtual data room is several times more cost-effective than other types of storage, such as physical storage. With VDR, you pay once and get many options, and you do not need to buy paper and other office supplies, print documents, and pay for courier delivery. Copies can easily be forwarded in space, and it’s much safer. Neither you nor the potential partners need to travel to the meeting location, you don’t have to pay the second party’s expenses, plus you save a lot on buying physical security tools and salaries for employees who could work in the physical data room.
This provides transparency
For your deal to succeed, one of the main indicators is openness and trust. Still, when it comes to giving access to their most sensitive documents, companies have always felt doubt and fear and may not have given out some important information. So that shareholders, investors, partners, or creditors don’t feel threatened by a data breach – use a virtual data room. Their flexible access settings guarantee your full protection and thus ensure transparency. You, in turn, can take advantage of features to track user activity within the space. These features enable you to see the smallest details of user activities, including when the user entered and exited the area, what documents the user entered and how long they stayed there. In addition, the audit log provides automatic reports from which you can extract useful analytics and spot a threat or error in time.