Online data room software is typically utilized for M&A transactions or due diligence processes, as well as other business transactions that require the transfer of confidential documents. This is especially relevant for tech startups which’s growth and development often hinge on being acquired as either a goal exit strategy or an important milestone.
During M&A due diligence, all parties are required to go through huge amounts of documents within very tight timeframes. It is essential to choose a virtual dataroom service with advanced security features and granular access rights. This will help you keep your valuable data safe. Look for features like two-factor authentication as well as timed access expiration. multiple user permission levels, and IP-address based access restrictions. Find out if the service has certifications such as ISO 27001, SOC 1, SOC 2, HIPAA and GDPR.
When choosing a online data room you must take into account the size of your business and the volume of documentation you plan to upload and manage using the application. Startups have less documentation while enterprises require more advanced functionality. To meet your requirements choose a vendor that has an adjustable interface mobile apps that are compatible with iOS and Android devices that allow batch uploads and reports on document activity, tag and foldering and the ability to search by file type, and an option to create groups for users with different permission levels.
Certain VDR providers offer a free version for small and medium-sized companies such as Brainloop Secure Dataroom. Others, like iDeals, Merrill Datasite, Watchdox, and Ansarada offer unlimited storage for all customers.