A virtual data room (VDR) is a platform for software that allows secure sharing and collaboration of sensitive documents. Many businesses use VDRs for important business processes such as due diligence, mergers and purchases and fundraising.

While some VDR providers boast their ability to accommodate all industries, most vendors have a specialization. To narrow the field businesses can search for vendors who have testimonials from their clients in their industry and an example of the kinds of projects they can manage with their software.

Legal firms employ VDRs to share confidential documents during business and litigation with lawyers, clients, and third parties. Real estate and immovable property deals require a lot of documents exchanged between interested parties, and VDRs aid in reducing the time spent. Private equity and funds use VDRs to communicate with limited partners, auditors and portfolio company management.

Companies in the banking and financial services industry should search for a VDR provider that has the ability to customize the user interface as well as multi-language support, and integration with existing IT systems. They should also think about virtual data room for business the types of documents and folders that they will need to share and store. The vendor should also offer different pricing options, including per-page, per-storage and a flat-rate monthly cost. Some vendors also offer a no-cost trial or a tiered pricing structure that allows customers to try the service before committing. A great VDR is user-friendly and has simple interfaces that combine powerful features to meet the needs of diverse industries.