The virtual dataroom (VDR) offers secure online storage for sensitive corporate documents to be stored for due diligence, M&As contract negotiations, and other projects. In contrast to standard file-sharing apps, VDRs are specially designed for storing large amounts of documents that can be easily searched and organized by an organized order of the folder. They also help with compliance with industry regulations such as ISO 27001, GDPR and HIPAA for biotech and medical industries.
While many investment bankers and advisors might think that all VDR providers have the same features, there are actually significant differences in the capabilities offered and pricing structures. Make sure that you understand the pricing structure prior to deciding on the right provider, for example, whether they charge per page, the number of users, size or duration of the project to avoid unexpected costs or overages.
Look for an intuitive interface when reviewing the virtual data room. This will lessen the learning curve for new team members. Make sure it offers tutorials, guides, and support to help with onboarding. Make sure that the VDR can be customized to match your brand and work seamlessly with any other software or tools your team is using. Verify if the VDR vendor offers features that promote collaboration like real-time commenting and editing, as well as Q&A modules. This will save you time and improve communication within your team during due diligence. Additionally, consider whether the provider has built-in audit trails which provide you with information on who has accessed what document and when.