The most common uses for online data room software are M&A deals as well as due diligence processes and other business transactions that require the transfer of confidential documentation. This is especially relevant for tech startups that’s growth and development are typically dependent on acquisition in the form of an exit or as a milestone.
During M&A due diligence, all parties are required to go through immense amounts of documentation within relatively short timeframes. It is essential to select the right virtual dataroom provider that provides advanced security features and granular access rights. This will allow you to avoid losing valuable information. Look for features such as two-factor authentication as well as timed expiration of access, multiple levels of user permissions and IP-address-based access limitations. Check if the provider has certifications like ISO 27001, SOC 1, SOC 2, HIPAA and GDPR.
When you are deciding on an online data room, you should consider the size of your company and the amount of documents you plan to upload and manage through the application. Startups are less document-driven, while enterprises require more advanced functionality. Choose a provider that provides a customizable interface and mobile applications for iOS or Android devices. They should also provide batch upload options, reports on document activity and folders, tagging, and the ability to search for documents by kind.
Some VDR providers, like Brainloop Secure Dataroom, offer an affordable version of their service to small and medium-sized companies. Certain VDR providers, such as iDeals and Merrill Datasite offer unlimited storage for all customers.