A VDR is an online space for sharing and working on time-sensitive documents on the internet. It’s a simple and secure alternative to other document management options like files-sharing services and physical data rooms. VDRs are used extensively in a variety of industries and for a range of deal types. From M&As to land and housing deals, they are utilized by a broad range of people. Whatever the business area, VDR software is designed to support due diligence and disclosure throughout transactions, and provide users with an easy and user-friendly platform for uploading, saving and managing multiple files.
VDRs are usually hosted on the premises or in cloud. They come with a variety of hosting options, from self-hosted, hybrid, or fully virtual. Users can select a sharing model that comes with granular restrictions which restrict uploads and downloads to a restricted group of collaborators, or one that permits unlimited accounts for collaborative ecosystems. VDRs have basic reporting capabilities and audit trails that keep track of document activity, right down to the person who viewed or downloaded which files.
When choosing a VDR, it is essential to verify the conformity certificates and ensure that they are aligned with the most stringent security standards. Consider features like two-factor authentication and multiple permission levels. A user-friendly interface with drag-and drop and bulk uploading features is essential to ensure a smooth and efficient experience when working on projects using the platform. Other useful features include automatic index numbering, digital watermarking and dynamic tagging for metadata of files.
