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How to Choose a Data Room

Virtual data rooms are an essential tool for a variety of business operations. From M&A transactions and venture capital transactions, to fundraising and regulatory compliance, the virtual data room can be a valuable tool. The right VDR will change these processes, making them more efficient to perform, faster, and more efficient. However, selecting the right data room for your particular requirements can be a difficult task.

Check out the features offered by a service and make sure they’re compatible with your needs. For instance, due diligence is one of the most frequently used applications for a VDR which is why you’ll want to find a solution which is quick and easy to set up with an optimized workflow. Also look for an option that displays an NDA or Terms of Access before allowing access to files and offers indexing of files so that you can quickly find the correct version of an document without having to go through the entire structure of the folder.

You should also consider the security of a service provider and their data centers. Choose a provider whose data centers are certified to meet specific standards like SOC 1/SSAE 16, ISAE 3402, FISMA DIACAP and FedRAMP. Look for a platform with industry-standard file types, distinct watermarking and an electronic lock to track the documents you’ve viewed.

Many traditional providers use a per-document or per-page pricing model which can be costly in the event that you have a large volume of documents to share. It is recommended to choose a data room with flat-rate pricing, or at minimum one that is transparent about their pricing model.


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