VDR Secure Data Exchange

Virtual data rooms (VDRs) enable the safe and efficient exchange of large documents particularly in the case of complex transactions. They can simplify due diligence processes, M&A transactions, fundraising efforts, and environmental assessments. They can also reduce the risk of theft of information and leaks of data, which could be costly and time-consuming for businesses. Before choosing a service it is crucial to compare the various features of various VDRs including their security standards and compliance. It is recommended to read the security page on each vendor’s site to learn about the measures they have in place to keep your files secure.

For instance the example above, an VDR should allow for two-way official website sharing of privileged documents between lawyers and clients or between a company and outside experts for litigation or business transactions. It should also permit monitoring and auditing of document activity to guard against the loss of sensitive data. The best VDRs are HIPAA-compliant, meaning they follow national standards for electronic health transactions and the storage of health information, patient information, plans, and employee information. They must also be ITAR conforming, which means that they must comply with the export and importation of documents related to defense.

Biotechnology and pharmaceutical companies rely on VDRs for quick collaboration with contract research organizations (CROs) and regulatory agencies, and investors. They have to share a wealth of information including proprietary formulas and clinical trial results and intellectual property. A reliable VDR will have multiple layers that include two-factor verification as well as the ability to verify IP addresses or devices as well as the locations from which users log in. It should also offer 24-hour customer service to ensure that users are able to get help with any issues they might confront, regardless of their time zone.