A virtual data room (VDR) is a safe online environment that allows to share large volumes of confidential information outside of the firewall of the company. VDRs are used to aid due diligence in M&A transactions and bankruptcy proceedings, litigation and fundraising.
A top VDR can be the difference between a successful or unsuccessful an agreement based upon the ease of use for all stakeholders. If the system has a steep learning slope that is, it will be more difficult for the participants to upload their files to save them and manage them. This can slow down progress and delay negotiations.
A VDR must be organized efficiently to facilitate collaboration and quick access. The organization of documents into folders or tags will assist users in finding information more quickly and efficiently. Implementing features such as real-time annotations and comments can also increase the speed of discussions.
The most effective VDRs provide granular document permissions and allow administrators to specify access policies to the individual file level. This includes features such as redaction, which blacks out areas of a file so that personally-identifiable information remains private. Additionally, the best VDRs will be certified as secure like ISO 27001, SOC 1/2/3, GDPR and HIPAA. They’ll also come with a variety of file formats and cross-platform compatibility. This allows users to work on a variety devices and platforms, reducing the amount of time switching between applications.