A virtual dataroom is a tool which facilitates the safe sharing of confidential documents between collaborators from outside. It eliminates the requirement for physical files to be transmitted through email or messaging platforms and is accessible by multiple users at the same time. It also offers a higher security level by offering granular permissions and a robust encryption system that functions both in transit and at rest.
There are many different types of virtual rooms. Some companies specialize in specific areas or types of projects. They may then provide an array of features that are specifically specific to the requirements of that particular niche. For instance, M&A due diligence is one of the most common applications of VDRs and some providers provide specific features that facilitate an expedited due diligence process.
Many modern VDRs index and search the full text of the contents of the file. This decreases the amount of time that users are spending searching for important documents and organizing the structure of folders. They can also scan and convert PDFs as well as other file formats that are commonly used into searchable documents, which helps accelerate due diligence. Other providers offer a variety of integrations that automate business processes, like signing NDAs and managing invoice approvals.
Find a service that provides a user interface that is user-friendly for administrators and users. You should also ensure that the service is located in top data centers and has a comprehensive recovery plan.