A virtual dataroom is a cloud-based application for file sharing that’s used to save and transfer private documents during business transactions. These documents may include financial reports, contracts tax information, as well as intellectual property. Keeping this sensitive material secure however easy to access is the primary reason businesses choose to use VDRs.

It is important to evaluate the characteristics of VDRs in order to figure which one is suitable for your business. You should also evaluate the level of customer support provided by the company. Ideally, the support staff is available round the clock and have multiple options for contact and languages. Verify the certifications of the provider for security. The most reputable providers will have at minimum ISO 27001, SOC 1/2/3, HIPAA, and GDPR compliance.

The most important features to look for in the VDR include analytics on user activity and reporting along with granular permissions and bulk invitations for users. In addition, it’s important to choose a provider with two-step/multi-factor authentication. This security feature can significantly reduce hacking attempts that are not authorized and unauthorized. Device purging is another beneficial feature that allows administrators to disable access or ban access to a specific device.

Collaboration with a variety of users is essential for many companies. The built-in document annotations and Q&A module of a VDR enable those working remotely to be on the same page. This can also increase productivity by reducing the time it takes to complete due diligence requests. It is also important to select a vendor with mobile apps that permit easy work on the go.