Virtual Data Rooms (VDRs) are software platforms that enable companies to keep and share sensitive documents in a secure location. It is used to conduct due diligence in mergers and acquisitions, as well as litigation and financial transactions.
The VDR market is extremely scattered, with vendors offering a range of features and price points. The best vendors provide an intuitive user experience, and support staff that speak various languages. They also have extensive analytics functionality that gives behind-the-scenes information on how documents are used.
Certain data rooms are tailored to specific industries. For example the life science industry requires documents that contain intellectual property as well as medical information to be stored and shared. Many providers offer built-in functionality to data room facilitate these processes. For example redaction (blacking areas of files that contain personally identifiable information) is a feature. To make building projects easier, the immovable property sector requires contracts to be sent out to contractors. Certain vendors have built-in functions for this, such as the ability to share blueprints or other important documents in a matter of minutes with subcontractors through a VDR.
When evaluating data room options, ask for a free trial and then look at how easy it is to use. A VDR which is difficult to use won’t be efficient, so be sure to test the various features before signing. Also, think about the reliability and availability of the VDR. A reliable VDR should always be accessible and available, with minimal interruptions.
