How to Choose a Data Room for Confidential Mode

For any company that has to deal with sensitive information, a virtual data room is a must-have tool. These tools are most commonly used in M&A transactions to protect critical information from unauthorized third parties during due diligence. It’s not just M&A that requires a high level of protection. Intellectual property, such as research results, patentable products and much more, are frequently involved in projects requiring documents.

When selecting a data room, ensure that it is suitable for your company and includes the features you need. You should select an organization that allows you to test their platform and ask questions prior to paying the subscription fee. Also, ensure that the price is reasonable and is based on the tools they provide.

Find a virtual dataroom with a strong security setup to ensure that only authorized users have access. It is crucial to have a solid two-factor authentication (2FA) system in place to prevent unauthorised sharing. Remote shred which erases files downloaded after an administrator has removed access is another great feature.

The best data room software providers will be able to restrict access to certain documents or even a folder within the document. They can also set a time limit for documents to prevent unauthorised downloading. Administrators can also put specific watermarks on documents to discourage users with questionable intentions. They should also be able to handle the most commonly used file types, including PDFs and XLSXs.