A virtual data room (VDR) is an electronic platform through which businesses share documents for due diligence and other transactions. Its primary purpose is to allow secure access to sensitive data from anywhere in the world. The VDR is a great choice for projects and transactions that require confidentiality to be of prime importance, such as M&A deals.
Unlike generic file-sharing services, VDRs are specifically designed to handle large volumes of data. They are typically organized into folders which makes them easier to use and navigate. Moreover, you can customize the permission settings to only allow certain groups of users to access specific files. You can also protect sensitive files from watermarking, and limit access based on date and time, and also IP address restrictions. Some vendors also provide additional administrative services like scanning or translating documents for a fee.
To determine the most effective VDR for your needs, you must compare price, features and user reviews. Demos are available from a variety of providers to help you test their platform before making your choice. You can also look into review sites for software that offer real user feedback and are usually impartial. Some of these sites are even acknowledged by experts in the field.
Comparing VDRs is vital to deal management ensure that you select the best solution for your project or transaction. Some VDR providers charge above the market average, however this is often justified by their strong security features. The theft of confidential business data is expensive and impossible to recover from.