How to Choose a Data Room

A virtual data room is a vital tool in a variety of business operations, from M&A deals and venture capital transactions to fundraising and compliance with regulatory bodies. The best VDR will transform these processes by making them faster and easier to use. It also makes them more efficient for all those involved. However, picking the right data room for your specific needs can be a difficult task.

First, look at the features of a provider to make sure they match your requirements. For instance due diligence is one of the most commonly used uses for a VDR so you’ll need to find a platform that is quick and easy to set up using an optimized workflow. Also, look for a platform that displays an NDA or Terms of Access before allowing access to files and offers indexing of files to ensure you can quickly locate the correct version of an document without having to go through the entire folder structure.

You should also take into consideration the security of a provider and their data centers. Choose a provider whose data centers are certified to meet specific standards such as SOC1/SSAE 16, ISAE 3402, FISMA DIACAP and FedRAMP. Additionally, look for a platform that supports industry-standard formats for files and features unique watermarking and an electronic leash feature that allows you to monitor which documents are being seen.

Many traditional providers use the per-document or per-page pricing model which can be costly in the event that you have a large number of documents to share. For this reason, you should pick a data space that what is watermark has flat-rate pricing, or at least transparent about how pricing models work.