A virtual data room (VDR) is an online repository that allows sharing of files securely and rapidly. It differs from traditional document sharing platforms in that it allows multiple users to use the platform simultaneously and has features such as the ability to track activity in a granular manner. Moreover, it is designed to support a range of file types and sizes. This makes it ideal for legal transactions, M&As, and fundraising.
The best VDRs have an intuitive interface and satisfy compliance and security requirements. They also provide a wide range of functions to help businesses work more efficiently. This includes the ability to add watermarks to documents, and also track the progress of activities. They also provide electronic signatures and encryption. Some are compatible with various operating systems.
When selecting a VDR provider, it’s crucial to be aware of the needs and goals of your business. For instance, a start-up will likely require a user-friendly platform with a short learning curve and a 24-7 customer support. A M&A business may require an efficient VDR to handle large amounts of data.
The top VDR providers have a range of pricing structures that can be adapted to different budgets and business models. Some, for instance, have a per-page structure while others charge based on storage size. Some also offer the option of a monthly subscription which includes unlimited pages and the ability to limit the number of users. Some companies provide free trials to let potential customers try the software out before buying it.