Virtual data rooms (VDRs) are secure online environments that allow huge volumes of confidential data to be shared beyond the firewall of a business. VDRs are used to aid due diligence in M&A transactions, litigation, bankruptcy proceedings and fundraising.
A top VDR can either make or break an agreement based upon how simple it is to use for all parties. If the system has a steep learning curve and is difficult to master, it will be more difficult for users to upload files or save them and manage them. This could slow progress and delay negotiations.
A well-organized and efficient data management system in a VDR is also essential for quick access and efficient collaboration. The organization of documents into folders or tags will enable users to locate information more quickly and efficiently. Implementing features like real-time annotations and comments can also improve the speed of discussions.
The best VDRs provide granular permissions for documents and allow administrators to specify access policies down 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. Furthermore, the most secure VDRs come with security certifications like ISO 27001, SOC 1/2/3 GDPR, and HIPAA. They will also be able to support different formats and be cross-platform compatible. This allows users to work on a variety platforms and devices, reducing the amount of time spent switching between applications.