Every company that shares privileged data with shareholders and investors ought to have a data room. It’s imperative that you hire a reliable data room vendor who provides all the essential features of a robust data room.
Here are 4 dos when choosing a data room vendor:
1. Consider security
Security should be top priority when choosing a data room provider. Ensure that your preferred vendor has earned an ISO 27001 certification and that they implement robust safety measures such as data encryption and authentication. To prevent data hacking, the data room vendor should have a SSAE 16 Type II certificate. It’s very important to ensure that data rooms are properly fortified.
2. Check ease of use
A good virtual data room should be easy to maneuver around. It should have an intuitive user experience and operate on numerous devices. Before hiring a data room vendor, request for a limited trial period to familiarize yourself with the VDR and see whether it suits you. The data room should have a user-friendly design and interactive graphics that are fun and straightforward.
3. Ensure you have 24 hour access
Another feature to consider when choosing a data room vendor is accessibility. VDRs have a huge advantage over physical data rooms because you can access them at any time, irrespective of your location. All that’s required is a computing device and a stable internet connection. However, some VDRs still implement time limits to clients, so ensure that your favorite data room vendor offers unlimited access to the data rooms.
4. Assess the features and functionalities
Different VDRs provide wide-ranging tools and functionalities, some of which may not necessarily be useful to you. Look for a platform that provides all the basics: file protection, rights management and permission control. If your business relies heavily on social media, the data room vendor you choose should provide some additional social networking and blogging tools. You should also be able to track all activities that occur within your VDR, so ensure that the platform supports page-level reporting and auditing.
Here are 3 don’ts when choosing a data room vendor:
1. Don’t hire an unknown vendor
It’s important to check the reputation of a data room vendor to understand whether they’re reliable or not. Check customer feedback and choose a VDR provider with the best track record. This criterion will help you to avoid frustrations from untrustworthy vendors later on.
2. Don’t go for the cheapest VDR
Although the price of your data room is a vital factor to consider, there are multiple factors that affect the cost. Some “cheap” vendors compromise crucial features such as security and accessibility for affordability, so ensure that you don’t fall into this trap. Remember, a bird in hand is worth two in the bush.
3. Don’t settle for mediocre customer support
Data room vendors ought to provide impeccable customer support services 24/7. If you’re getting anything less, then it’s time to look for a better alternative. Sometimes, clients face challenges that require immediate assistance. Avoid hiring a data room vendor that doesn’t have a responsive customer support team.
