A virtual data room (VDR) is an online platform that allows for secure sharing and collaboration on sensitive documents. Many companies use VDRs to facilitate important business processes, such as due diligence, mergers, fundraising and purchases.

While certain VDR vendors boast of their ability to support every online data room services industry, most vendors have a focus. To narrow the field, companies can look for vendors who offer testimonials from their clients in their industry and a demonstration of the types projects they can manage with their software.

Legal firms rely on VDRs to share privileged documents with attorneys, clients and other third parties in business and litigation. Real estate and immovable property transactions require copious amounts of documentation exchanged between interested parties, and VDRs can streamline the process. VDRs are utilized by private equity funds to communicate with their auditors, limited partners, and management of their portfolio companies.

Companies that are in the banking and finance industry should seek out an VDR that has a user-friendly interface, multi-language support, and integration with their current IT systems. They should also think about the kinds of documents and folders that they will need to share and store. The vendor should also offer a variety models, including per-page and per-storage as well as a fixed monthly cost. Some vendors also provide a free trial or tiered pricing structure that permits users to test the service before committing. A reliable VDR is simple to use and comes with simple interfaces that combine robust features to meet the needs of diverse industries.