VDR software allows businesses to share critical business information with outside parties like lawyers and compliance auditors. As opposed to file sharing software, VDR software is designed to protect business-sensitive information and ensure that no one will be able traditional document management technology to modify, erase or steal the contents of shared files. This makes VDR software perfect for M&A due-diligence but also in any situation in which sensitive data must be shared with other third parties, such as investors, service providers, or other interested parties.

When you evaluate a virtual room, look for these features:

Security: VDRs are designed to provide an environment that is secure and can resist malware attacks, hacks and other forms of malicious behavior. Choose a provider that offers ISO certified security measures such as encryption and backups. Additionally, VDRs should be able to VDR should allow users to define access levels for different groups of users and to change these privileges quickly if mood shifts during negotiations.

Document Management Document Management VDR that is of good quality allows you to upload your documents, organize them into meaningful categories and use search functions to find specific folders and find exact or partial matches. A VDR should also incorporate advanced functions such as OCR, optical character recognition for PDFs as well as images, and filters that reduce the search results.

Collaboration and Communication: Check for a VDR that includes built-in discussion features, a chat function that lets teams work together, as well as messaging functions that can eliminate communication silos. In addition the VDR should include an API that can be used to integrate it with other systems.