If you’re in business sharing documents with clients, partners or investors can be essential. But it’s also vital to ensure the security of your documents and communications. You’ll need to select an online dataroom for your business that provides the security features you need access to 24/7 to authorized users; two-factor authentication; timed access expiration; multiple permission levels; and IP-address-based access restrictions. Examine the provider’s compliance certificates to ensure that they meet the highest security standards, including SOC 1 and SOC 2. ISO 27001 and HIPAA.

VDRs are typically used in M&A transactions where buyers have to examine large volumes of confidential documents prior to signing a contract. The standard procedure was for buyers (often on a plane) to go to a secure location and then review the hard copies. This could take days, and increased the risk that the deal would fail due to delays or other issues.

VDRs allow the confidential documents to be viewed from any part of the world which makes the process faster and boosts competition among potential buyers. This is especially important when dealing with companies in the life sciences industry that must share information on everything from HIPAA compliance and clinical trials to patenting IP licensing and licensing.

Virtual data rooms can also be used to raise funds, IPOs and corporate finance including insolvency, mergers and acquisitions real estate transactions, asset sales, and litigation files. It’s easy to see why so many companies switch to VDR providers.