Holding documentation in a secure space is one of the core objectives of each company when it comes to secure data handling.
Just a couple of years ago, businessmen worldwide were using special archives, physical data rooms, just to store all the paperwork that was created in their deal making processes. But this process soon reached the point where there was not enough physical space; and the faster growing the company was, that space ran out quicker.
This is exactly why digital data room software was created. Their assistance in the development of a company is irreplaceable, and there are a couple of reasons why.
1. Security
As we all know, physical documentation is much more prone to security breaches compared to digital. If the files are being held in an enclosed space, some people might still lay their eyes on data that wasn’t meant for them. It is also very easy to misplace files and then search for them for hours without end.
This isn’t the case with virtual data rooms. Apart from the search feature and Optical Character Recognition (OCR) in place, you are able to ensure additional security to the files you are holding in your digital space. Data rooms are designed with security in mind and are using bank-grade security protocols, end-to-end encryption, single-sign-on, digital watermarks, and multi-factor authentication to ensure the appropriate level of file safety.
2. Permission settings
Allowing certain team members access to selected files that are only important for their project is one of the greatest advantages of using data room services. It reduces the confusion about work around a project and helps everyone get where they need to go. Those settings can be as granular as giving access to individual users, or whole departments in the company.
And through categorizing workers into permission groups, it is easier to keep track of what has been done, and what still needs to be finalized. By giving permission settings to outsiders of the company, you are also ensuring that they do not venture deep into your company documentation.
3. Document management features
Virtual data rooms have an array of tools that help businesses be better at what they do. Built-in templates, AI assistance, search engine — those are all part of a solution that will help the business grow. All of those amenities are also housed in a user-friendly interface that allows for greater integration with the already existing workflow of the company.
If all of the important company documents are put into one centralized space, it is much easier to customize the features found in the electronic data room, and get rid of the organizational confusion once and for all. The tools present in that cloud storage are also important for outside investors, as showing them the data can be done in a personalized, easy-to-grasp way.
4. Support
If you are having problems with your virtual data room solution, you can always rely on support. There are teams of people prepared to be at your service, and they will go the extra mile to help you solve your conundrum.
Accessing them can be done via chat, a phone call or even through a specially designated representative, who is a link between you and the company that designed the project. Apart from training materials, you can also expect competent in-person help. But be sure to ask about the available support options when choosing a provider, as no data room is equal — every solution has a different level of support.
5. Accountability
While managing investors’ money, it becomes difficult to show exactly where their money went. With online data room software, this can be easily accomplished, as allowing them access to space, and showing them what has been done allows for greater trust between the parties. The possible partner can also leave comments on the documents, signaling which parts need to be made clearer, and what still needs to be worked on.
This also improves the flow of due diligence in an M&A deal. Through categorization and organization of all of the documents in the space, the potential partner won’t have any issues with finding the data they are looking for.
Conclusion
Virtual data room providers offer great tools when it comes to different aspects of the business. They offer a secure space for the documents, enable cooperation, and are equipped with features that ensure the company does follow the appropriate processes.
This allows for quick and measurable growth aided by the software infrastructure created by the data room providers. We encourage you to check out what is available on the market, compare virtual data rooms, and pick a solution that will meet your needs. Remember that the best virtual data room providers are the ones that help your business grow!
