A virtual data room (VDR) is a software platform that allows secure sharing and collaboration of sensitive documents. Many companies depend on VDRs to help facilitate crucial business processes, such as due diligence mergers and acquisitions, as well as fundraising.
While certain VDR providers boast their ability to support every industry, the majority of vendors specialize in a specific area. To narrow down the selection companies should look for vendors that provide testimonials from clients in their respective industries, as well as an explanation of the types of projects that their software can handle.
Legal firms rely on VDRs to share privileged documents with attorneys, clients and third party parties for business and litigation. VDRs streamline the process of exchange of documents between the parties involved in real estate and immovable property transactions. Private equity and funds use VDRs to communicate with auditors, limited partners and portfolio company management.
Businesses in the finance and banking industry should seek out the best VDR that provides a custom interface, multi-language support, and integration with their existing IT systems. They should also think about the kinds of documents and folders that they will need to share and store. The vendor should also offer a range of pricing options, including per-storage, per-page and a flat-rate monthly fee. Some vendors also offer a no-cost trial or tiered pricing structure that permits users to try out the service prior to making a decision to sign. In the end, a reliable VDR is simple to use and has an intuitive user interface with robust features that meet the needs of a variety of industries.