Very few companies and businesses store physical files in cabinets nowadays. Securing data in physical data rooms has become outdated because it poses so many risks to the business and its clients. This traditional method of storing data is also very inconvenient and expensive in the long run.
As your company continues to grow, and attract investors, you will be required to embrace technology when storing and sharing files with your shareholders and potential investors. Modern data rooms commonly referred to as virtual data rooms or VDRs are virtual and are securely hosted online in a way that your potential investors and shareholders can easily access your confidential information through a secure internet connection.
Virtual data rooms are cost-efficient and promote ease of accessibility since each and every party can view authorized data from their current location. Click Here to Learn More about VDRs and how easy it is to get started so that you can now manage your deals with confidence.
If you are new to VDRs and you are looking for a simple guide to help you familiarize yourself with this new technology, here are 2 interesting things to know about virtual data rooms.
Virtual Data Rooms Promote Ease of Use
As your company grows, you will at some point be required to share and review thousands of documents every day. How those documents are organized can make or break your organization. Well-numbered files go a long way in ensuring that reviewers find what they need with ease and it also reduces confusion and delays while keeping the processes going. One thing you need to know about VDRs is that they promote ease of use.
The folder templates with due diligence checklists ensure that document sharing within the VDR is fast and efficient. If you have hundreds of files that need to be uploaded and shared daily, doing things manually in a physical data room would be so cumbersome and tiring.
Virtual VDRs with the versioning tool make it easy for reviewers to access the latest version of the document and save time since they don’t have to peruse all the documents and wonder if they have the correct version of the sensitive files.
Virtual Data Rooms Have Intricate Security Features That Ensure That Your Files Are Protected All the Time
Hackers are increasing their efforts every day with new techniques. Their goal is to steal sensitive data but with the new, cloud-based storage, you can rest easy knowing that your files will not be hacked into and have sensitive information stolen. Virtual data rooms are the new indispensable tools for sharing confidential data safely.
A standard virtual data room will contain a digital watermarking system to avoid information leaks. The system should give the exact date and time, plus the name of the user who downloaded the document to prevent unnecessary downloading of documents. Digital watermarking can be used on text messages, videos, and even audio.
VDRs also have two-factor authentication that provides an extra layer of protection by making sure that all users log in using their passwords and a unique code used for verification is sent directly to their mobile phones.
Two-factor authentication reduces the chances of wrong persons entering the data room because even if an unauthorized person illegally acquires your password, they will still be required to input the additional code sent to your mobile phone before joining the data room.
Joseph Yaghi
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