What to Look for in a Virtual Data Room

What to Look for in a Virtual Data Room

virtual data room solution

VDR software allows businesses to securely share business-critical information with external entities like lawyers and compliance auditors. VDR software, unlike file sharing tools is designed to protect sensitive business data and ensure that no one alters or delete information from shared documents. This makes it perfect for the M&A due diligence process but also for any scenario where sensitive information needs to be shared with service providers, potential investors or any other outside parties.

When evaluating a virtual data room, be sure to look for the following qualities:

Security: VDRs are made to provide an environment that is secure enough to withstand hacks, malware attacks and other forms of malicious behavior. Find a service provider that offers ISO-compliant security, including encryption and backups. Additionally, VDRs must be ISO compliant. VDR should permit users to set access levels for various groups of users and to change those privileges quickly if the mood changes during discussions.

Document Management: A VDR that is of good quality will allow you to upload documents, arrange them into meaningful categories and use search functions to find specific folders and detect exact or partial matches. A VDR should also include advanced functions, such as OCR optical character recognition for PDFs as well as images and filters to narrow down the search results.

Collaboration and Communication: Search for a VDR that has built-in discussions, a chat function that allows teams to collaborate, and messaging capabilities that eliminate communication barriers. Additionally to that, a VDR should include an API that can be used to connect it with other systems.