A virtual data room (VDR) is an electronic storage space for important and sensitive information. It’s used to secure due diligence during transactions for companies and provides an easy platform for sharing documents with a range of stakeholders.
VDRs are typically used during M&A transactions, when private documents are exchanged between the two parties. This includes financial records, contracts, tax documents, confidential information, as well as intellectual property. These data need to be easily accessible, but also secure from prying eyes.
Another aspect to consider is how easy it is to upload and download large files. Some vendors offer a drag-and drop feature that could speed the process. This is a great feature for larger projects. Also, check how easy it is to see activity reports that can help a user stay on top of document activity.
A top-quality vendor also offers various communication and collaboration tools, such as a Q&A, comment sections or even live-chatting. This can help improve workflow and productivity and increase team efficiency.