How to Choose a Data Room
When selecting a data room be sure that it has the appropriate features to help your specific project. VDRs vary in terms of the degree of security they offer and the kinds of files they can support and the number of users who have access to them. VDRs have different permission settings which can affect document safety and collaboration.
When you are evaluating different options, take note of how simple it is to install the software, create a folder structure and invite users. Check if the application includes a tool that enables you to quickly search for and download files, as well as index them in accordance with your due diligence checklist. Also, consider whether you would prefer a flat or a hierarchical file system.
If you intend to share the same files with a significant number of investors, think about the possibility of using the data room to restrict access to concurrent users. This feature is especially useful to prevent leaks from happening because it ensures that not more than one person can view sensitive files at the same time. Certain VDRs allow users to place dynamic watermarks to files. This prevents recipients from redistributing the files.
Also, take a look at the pricing of each service provider for their services and how they gauge the usage. Some offer a subscription model while others charge by the page or per user and storage size. When comparing pricing plans, remember that long-term agreements typically include substantial discounts. Find out if there’s a demo or free trial version to test the platform.