A virtual data room (VDR) is a software platform that allows secure sharing and collaboration on sensitive documents. Many companies depend on VDRs to facilitate important business processes, such as due diligence, mergers and acquisitions and fundraising.
While some VDR vendors claim to be able to support all industries, the majority of vendors specialize. To narrow down the choices, companies can look for vendors that provide testimonials from clients in their industry as well as an example of the types of that their software can handle.
Legal firms utilize VDRs for sharing privileged documents in business and litigation transactions with attorneys, clients, and other third parties. Real estate and immovable property deals require large amounts of documents to be exchanged between interested parties, and VDRs can streamline the process. Private equity and funds utilize VDRs to communicate with limited partners, auditors and management of portfolio companies.
Companies that are in the banking and financial services industry should look for a VDR service that offers an adjustable UI, multi-language support and integration with existing IT systems. They should also consider the types of documents and folders that they will need to share and keep. The vendor should also provide a range of pricing options, including per-page, per storage and a flat-rate monthly cost. Some vendors offer a free trail or a tiered price structure to allow users to test the service before committing. A great VDR is easy-to-use and has an intuitive interface that integrates robust features to meet needs of diverse industries.