A virtual data room (VDR) is a software platform that allows for secure sharing and collaboration on sensitive documents. Many companies use VDRs to facilitate important business processes like due diligence, mergers and purchases and fundraising.
While certain VDR providers boast their ability to accommodate every industry, the majority of vendors have a focus. To narrow down the selection, companies should look for vendors that have testimonials from clients within their respective industries, as well as a clear explanation of the kinds of projects their software can handle.
Legal firms use VDRs for sharing confidential documents in business and litigation transactions with lawyers, clients, and third party. Real estate and immovable property deals require large amounts of documents that are exchanged between interested parties, and VDRs aid in reducing the time spent. VDRs are utilized by private equity funds to communicate with their limited partners, auditors, and management of the portfolio company.
Businesses in the financial and banking services industry should search for a VDR provider that offers an UI that is customizable as well as multi-language support, and integration with existing IT systems. They should also consider the types of documents and folders they will need to store and share. The vendor should also offer different pricing options, including per-storage, per-page and flat-rate monthly cost. Some vendors also provide a free trial or structured pricing structure that allows users to try out the service before making a decision to sign. A reliable VDR is simple to use and comes with an intuitive interface that integrates powerful features to meet the demands of various industries.