Virtual data rooms (VDRs) are secure online environments that allow large volumes of confidential information to be shared outside of the firewall of a company. VDRs aid due diligence in M&A transactions, litigation, bankruptcy proceedings, fundraising, audits – almost any circumstance where external parties application of vdr need to look over sensitive company information.
The ease of use of a VDR can be the difference between a successful or unsuccessful deal for all parties. If the system has a steep learning curve, it will be more difficult for users to upload files and save them, as well as manage them. This could slow the process and impede negotiations.
A VDR must be organized efficiently to facilitate collaboration and quick access. The ability to organize documents into tags or folders can aid users in finding information faster and more efficiently. Implementing features like real-time annotations and commenting can also speed up the pace of discussion.
The best VDRs allow administrators to define document permissions down to the level of the file. This includes features such as redaction, which blacks out areas of a file so that personally-identifiable information remains private. The best VDRs also have security certifications such as ISO 27001 and SOC 1/2/3. They may also be GDPR or HIPAA compliant. They also have support for different file formats, and be cross-platform compatible. This lets users work on a variety of devices and platforms.