If you are about to start work on an M&A, IPO or fundraising deal, you’re also about to come across virtual data rooms (VDRs).
Now, you’re probably thinking, ‘why should I pay for a VDR when platforms like Dropbox or Google Drive let me do something similar, but for free?’
A Virtual Data Room is very different to a Dropbox or Google Drive. Here are 5 instances where you always should consider a VDR:
1) You’re sharing highly sensitive information and need 100% security
VDRs were built for enterprises to store and share confidential information about a transaction. Dropbox was built for people to quickly share photos of their pets and latest holiday with their friends.
The result is that security is paramount to data room providers.
VDRs have international third-party security certificates and data centers that are physically secured by biometric access and monitored 24/7. In comparison, Dropbox’s security has been breached on a number of occasions.
Furthermore, VDRs allow you to revoke access to a document even after a user has opened that same document. You can also keep all files (regardless of their format) protected with passwords, personalised watermarks and customisable NDAs. Dropbox only lets you password protect your links.