Secure Virtual Data Room
Deal Rooms With High Security
Virtual Data Room Basics
Investor due diligence is key as a part of any deal and the right data room makes that process easier. Knowing whether or not an investor has viewed a document, has made a note or change or is no longer interested can make or break an investment. If you’re a startup organization using a data room to help secure a round of funding, controlling all of your documents in one secure location can put your mind – and your investors – at ease.
Tips for Choosing A VDR/Dealroom Provider:
- Be sure to consider the security ratings and certifications of any potential provider. For example, ISO/IEC 27001 and 27002 are generally considered the highest levels of information security that a provider can have. These types of certifications are more than just attractive numbers: they are a promise from an independent party that the tool or software you may decide to use takes security just as seriously as you do.
- While many tools may promise integrations with other platforms, truly vet the security of those integrations. While it may be easy to integrate with a public eMail service like Gmail or a software suite like Microsoft Office, ask yourself if that is truly something you want. After all, public eMail is by no means secure and syncing your data to other tools or platforms may undermine the security use of the tool you’ve chosen. After all, why choose a software or tool that keeps you secure, but sends your data to another tool that leaks it publicly?
- Consider your future. While many small online data room providers offer a safe place to store documents during an M&A procedure or open round of funding, their use stops there. Look for tools that offer other options to support your business needs long past the need of one individual data room.
Virtual Data Rooms for Mergers And Acquisitions, Private Equity and More!
Diligent Corporation is a secure provider of tools meant to help businesses with their governance. The cornerstone tool, Diligent Boards, is board portal that is versatile for numerous needs – such as those of a virtual data room. Many of our clients come in wondering what a board portal is and learn how a portal tool can help to create more secure board communications. After all, many of the documents commonly found in a virtual data room – such as board meeting minutes, officers and directors and committees – are already best suited for a board portal like Diligent!
Online Data Rooms Help You Work Faster: Top Benefits of A Virtual Data Room
- Paperless: While being paperless helps the environment, it also helps your team in two important ways. With large M&A’s or legal firms supporting numerous clients and deals, paper becomes an onerous roadblock. Thousands of pages get printed – and a single typo or line item change can mean printing them all over again. An online data room means no printing – meaning that the cost of both labor and time is saved. Being paperless also helps maintain a high level of security. It’s easy to leave a legal brief or suitcase at a restaurant. Recouping the cost of that lost data can be insurmountable – especially for a start-up organization. Online data rooms allow you to turn off access to an individual as soon as their role is done – or as soon as they alert you to a lost device.
- Efficiency: When you’re working with numerous investors or clients, there is a lot of dotted lines to sign. The right virtual data room allows you to easily share information with the right persons – as well as get signatures and make sure nothing needed for a deal is missing. Proper organization helps your business and your deals move faster.
- Cost Savings: While the upfront cost of a virtual data room might seem high, it is important to weigh out how that cost can be leveraged over time. The peace of mind that knowing your documents are secure does not have a dollar sign attached to it. However, potential business trips to and from a client or investor to present documents and get signatures can add up fast. A virtual data room instantly saves those costs. There’s also no printing – or reprinting – documents only to find out that they are no longer needed.
- Transparency and Appearance: Making it easy for your clients, investors or staff to work is important. The use of a VDR can create an organized environment that everyone can work in easy. That transparency is a lot simpler than wondering where this document may be or chasing down signatures. Especially for organizations using a VDR to close a deal with an investor, the appearance of being organized and on top of your business can be quite valuable on a dollars-level.
How Diligent Corporation and A Board Portal Can Help
Diligent Corporation provides companies with corporate governance tools to help keep them secure and compliant. Much like a virtual data room, the information shared between directors on a board is confidential and must be secured. One of the core products in the Diligent product suite is Diligent Boards. A board portal is a secure platform, app or website that allows for a board of directors to share their board books – the same requirements of a data room. While boards have a corporate secretary to manage the documents in the portal, update books and securely communicate between parties, VDR’s generally have an administrator. In either case, the communications and documents are secure – including notes, signatures, meeting notes, agendas and more – and can easily be shared or restricted.