When companies are in the process of negotiating or making investments and negotiating, they have to look over an enormous amount of information. This can be overwhelming particularly when documents are classified as secret. A virtual dataroom (VDR) allows multiple parties to examine documents in a secure environment. This allows the deal to be completed quickly and reduces potential security dangers.

VDRs are increasingly used across a variety of industries including M&A and fundraising, as well as IPOs. The technology is also being used by SMEs and start-ups that may have hybrid working teams or remote workers.

When selecting the right VDR there are several important aspects to take into consideration. These include:

Document Security

There should be a high level of document security in a VDR, with access rights that can be customized to the needs of a project or individual user. Two-factor authentication is a excellent feature, as it adds an additional layer of security requiring users to verify their identity using a second method, like the use of a code that is sent to their mobile phones.

Document Management Streamlined

There must be a variety of tools that can be used to manage the project, for instance document version control. Administrators can monitor the history of documents and know how they’ve changed. Additionally, a useful feature is the ability to add personal notes to documents which cannot be seen by other users. This feature enables team members to highlight crucial areas of a document. It can help prevent miscommunication.