When companies are negotiating deals or making investments they have to look over a substantial amount of information. This can be overwhelming, especially when the documents are highly confidential. A virtual dataroom (VDR) allows several parties to look over documents in a secure environment. This allows the transaction to be completed quickly and reduces potential security risk.

VDRs are becoming increasingly useful for a wide range of industries which include M&A, fundraising and IPOs. The technology is also being adopted by SMEs and start-ups that may have hybrid working teams or remote workers.

When choosing the right VDR there are a number of important factors to consider. These include:

Document Security

A VDR should have a high security level for documents, with access rights that are customized to each user or project. Two-factor authentication is a excellent feature, as it adds an additional layer of security by making users verify their identity using a second method, such as a code sent to their mobile phones.

Streamlined Document Management

There should be several tools available to manage a project. Document version control is one of them. This allows administrators to keep track of the history of a document and see any changes made. Another useful feature is the possibility of adding personal notes to any document that is not accessible by other users. This feature allows team members to highlight crucial areas of a document. It can help to avoid miscommunication.