Virtual data rooms (VDRs) are secure online environments that permit huge amounts of confidential information to be shared beyond the firewall of a company. VDRs can facilitate due diligence in M&A deals and bankruptcy proceedings, litigation, fundraising, audits – almost any circumstance where outside parties have to examine sensitive company data.
A top VDR can determine the success or failure of an agreement based on how easy it is to use by all parties. If the system has a steep learning curve, it will be more difficult for the participants to upload their files to save them and manage them. This can slow down the process and impede negotiations.
Effective data organization in a VDR is also essential to facilitate access and efficient collaboration. The organization of documents into tags and folders allows users to find information quickly and effectively. Implementing features like live annotations and commenting in real time can also increase the speed of discussion.
The top VDRs provide granular permissions for documents, allowing administrators to specify access rules down to 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 are certified for security like ISO 27001, SOC 1/2/3, GDPR and HIPAA. They’ll also offer a variety of formats and cross-platform compatibility. This allows users to use a variety of devices and platforms.