A VDR is an online virtual space that allows users to collaborate and share time-sensitive documents. It’s a convenient and secure alternative to document management solutions like file-sharing services and physical data rooms. VDRs are used in different industries and deal types, from M&A to land & housing deals. VDR software allows due diligence and disclosure in transactions irrespective of the domain of business. It offers users an easy-to-use platform for uploading and managing many documents.
VDRs are typically hosted either on-premise or in the cloud. They come with a variety of hosting options, from self-hosted to hybrid to fully virtual. Users can choose a sharing model that has granular restrictions that restrict uploads and downloads to a limited number of collaborators, or one that permits unlimited accounts for collaboration within the ecosystem. VDRs also feature simple reporting and audit trail capabilities to monitor document activity, down to who is downloading or viewing which files.
When selecting a VDR, it is essential to examine the provider’s certification of compliance and make sure that they conform to the highest security standards. Consider features like two-factor authentication, multiple permission levels and IP-address-based access limits. A user-friendly interface, with drag-and-drop and bulk uploading functions is essential for a smooth and efficient experience when working on projects within the platform. Other useful features include automatic index numbering, watermarking digitally and dynamic tagging for metadata of files.
