A VDR is a web-based virtual space that lets users share and collaborate on time-sensitive documents. It’s a practical and secure alternative to document management options like file-sharing and physical data rooms. VDRs are widely used in many different industries, and are used for a variety of deals. From M&As to land & Housing deals, they are used by a broad range of people. Regardless of the business domain, VDR software is designed to aid due diligence and disclosure during transactions, providing VDR users with an easy platform for uploading multiple files.
VDRs can be hosted on premises or in the cloud, and provide a variety of hosting options, ranging from hybrid to fully virtual. Users can select a shared model that comes with granular restrictions which limit uploads and downloading to a select group of collaborators or one that permits unlimited accounts for collaboration within the ecosystem. VDRs also feature simple reporting and audit trail capabilities, to track document activity, down to who is downloading or viewing which files.
It is important to verify the certifications of compliance of the VDR provider and make sure that they adhere to the highest security standards. Look for features such as two-factor authentication, multiple permission levels and IP-address-based access limits. A user-friendly interface, including drag-and-drop and bulk uploading capabilities, is also crucial for an enjoyable experience when working on platforms. Other helpful features include automatic index numbers, digital watermarking and dynamic tagging for metadata of files.