A virtual dataroom (VDR) is an online storage space that houses confidential documents and files. It is used for projects that are critical to the business. A VDR is used in M&A due-diligence, fundraising, legal issues, and any other deals. It makes it easier for teams review and share sensitive information via the Internet.

The choice of a VDR provider should be considered with care as they vary in cost, complexity, and features. Some are specialized for specific industries, while others can accommodate the needs of all businesses and industry sectors. The best one will accelerate the process of negotiating and establish a solid basis for ongoing document handling.

The most secure virtual datarooms do not only secure information but also permit collaboration between team members. This is important for businesses that frequently collaborate with external partners or investors and must ensure documents are updated and accessible from any device. Other essential features include document watermarking, permission settings that are granular and thorough audit trails.

Many companies use free tools for sharing files, such as Dropbox or Google Drive, but these do not offer the security required when sharing sensitive information. In fact the risk of a single data breach could cost a company millions of dollars in fines and lost business opportunities.

When choosing a VDR partner, you should look for one that offers an opportunity to try the service risk-free or with a payment plan. Be sure to select a VDR with security features that are robust such as malware scanning, two-factor authentication, and encrypted storage. This will guard your business against cyberattacks and provide peace of mind for stakeholders and partners.