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When conducting high-risk transactions or strategic negotiations, it’s essential to have a secure way to share documents. Utilizing a virtual space (vdr) is a faster and easier method of working with other stakeholders without the danger of leaking confidential information accidentally or maliciously. But, when selecting the right vdr, you must be sure that you choose one that is secure for sensitive business information by using security features like user and document restrictions MFA, granular activities tracking and watermarking.

A vdr is most commonly used to facilitate due diligence in mergers and acquisitions (M&A). Private equity and venture capital firms usually look at multiple deals simultaneously producing a large amount of documents that demand organization. Instead of relying on filing cabinets or email, these companies depend on VDRs to organize their documents and share them with auditors, prospective buyers and other stakeholders.

Similar to investment bankers, they need to share securely a range of documents as they go through the process of investing in banking, such as IPOs and capital raising. They may be responsible for analyzing large amounts of data to determine patterns, and informing their corporate strategy. To protect their intellectual property, these banks need a platform that can host large amounts of sensitive data and control who has access to what.

When selecting a vdr, make sure it has industry-leading encryption technology that scrambles the contents of files and prevents non-authorized users from accessing to your private data. Choose a vdr that has built-in login monitoring that checks IP, device and location to ensure the identity of users is verified before they can access your file repository. The vdr must also provide document and file-level rights management to prevent files from being printed, copied or downloaded without your consent.