Virtual data rooms serve as an extremely secure way to store and distribute confidential documents during transactions. All VDR providers provide the same basic features, but certain providers specialize in specific industries or transactions. In addition, they often provide a variety of additional functions that make their software more efficient and user-friendly.

VDRs also assist in raising funds by allowing potential investors to access data room ma the financials of a company. This improves the likelihood of a venture being successful. They are particularly useful in due diligence, where all information on a business must be reviewed.

When deciding on a VDR, M&A teams should be aware of the amount of storage they’ll need and how much data each person will be able to access via the digital workspace. They should also look at the permissions granted to the VDR, which include the ability to restrict certain files to “view-only” and a specific role.

Other features that you should look for include drag-and drop uploading, automatic indexing and document numbering, an optical character identification tool that allows full-text searches across all uploaded documents, as well as dynamic watermarks which appear on every document when it is printed, viewed or downloaded, as well as the ability to create custom colors for brand. Certain VDRs require that all users sign a non-disclosure agreement prior downloading any information that adds another layer of security.

The best VDR providers are certified for security, such as ISO 27001 and SOC 1/2/3. They also comply with GDPR, HIPAA, and other regulations. They should also permit customers to alter their security levels and create fences that cover sections of documents to prevent screen shots. They should also offer assistance via live chat, email and telephone.