When deciding between a VDR and a transaction room, knowing the differences in technology, features, and situations will help you boost your organization’s efficiency and execute critical activities with the appropriate amount of security. Here’s all you need to know about it.
A VDR’s security standards may be higher than those of a transaction room
For enterprises that demand the highest degree of security, a virtual data room allows for file transfer, sharing, review, and signing. Transaction rooms, on the other hand, allow document signature at the most basic level. It may or may not, however, secure your papers to the same level of protection as a VDR.
The following scenarios may necessitate the use of a VDR rather than a transaction room:
- Perform due diligence prior to a merger or acquisition.
- Deals in venture capital and corporate fundraising
- Keeping track of legal papers
- Transactions in commercial real estate
Simpler transactions, such as signing scope-of-work contracts, residential real estate transactions, and some smaller personal loan transactions, may merely necessitate a transaction room’s capabilities and security level. Additionally, a transaction room may be able to print documents more readily, but a VDR may not be able to do so in order to secure the documents.
Security Certifications That Are Industry-Recognized Give You Peace of Mind
When it comes to sharing extremely sensitive information, VDRs must adhere to higher security requirements than transaction rooms. These certifications frequently span many industries, allowing a VDR to service consumers from a variety of industries, including financial and healthcare.
For those in the healthcare profession, Caplinked Virtual Data Rooms, for example, provide bank-level, enterprise-grade security that is also compliant with HIPAA standards. We have ISO 27001 accreditation, demonstrating that our technology secures data both digitally and physically to the highest international standards. For the secure processing of financial information inside a service company, we are also AICPA SOC 2 certified. Caplinked is also PCI SAQ-D and FISMA compliant, as well as carrying the EU-US Privacy Shield. Solutions for transaction rooms, such as DocuSign and other transaction room solutions, seldom provide this degree of protection, placing sensitive data at risk.
Collaboration is facilitated with the use of a VDR
VDRs provide you with more options for sharing and collaborating on documents. You’ll need the capacity for everyone within your business to see, read, and perhaps alter papers and files if you’re doing M&A due diligence. You may make changes safely within your VDR workspace without ever needing to download anything.
Furthermore, unlike a transaction room, VDRs enable the storing and administration of a variety of file types. The majority of transaction rooms only work with PDFs or a file type that is exclusive to their software. As a result, transaction rooms are less flexible as a means of sharing mission-critical data. VDRs may also work with commercial productivity software like Microsoft Office.
Changes to Keep an Eye on for More Productivity
Transaction rooms are useful for “one-and-done” transactions, such as signing a contract for someone to execute a specified SUPER job within a certain amount of time. Larger initiatives, such as M&A due diligence or the collection and review of legal papers prior to a court case, require the ability to organize, exchange, and edit documents without the need for onerous plug-ins or software downloads.