How to Select a Virtual Data Room for Your Industry

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

While certain VDR vendors claim to be able to data rooms support all industries, the majority of vendors are specialized in their field. To narrow the selection companies should look for vendors that provide testimonials from clients in their industry as well as an explanation of the types of projects their software can handle.

Legal firms rely on VDRs to share privileged documents with clients, attorneys and other third-party parties for litigation and business transactions. Real estate and property deals require copious amounts of documents to be exchanged between interested parties and VDRs can streamline the process. Private equity and funds utilize VDRs to communicate with auditors, limited partners and portfolio company management.

Companies in the finance and banking industry should consider a VDR with a flexible interface, multi-language support and integration with their existing IT systems. They should also think about the kinds of files and folders they will require sharing and storing. The vendor should also offer a range of pricing options, including per-page, per-storage and a flat-rate monthly cost. Some vendors also offer a complimentary trial or a structured pricing structure that allows users to test the service prior to making a decision to sign. A great VDR is user-friendly and has a simple interface that combines robust features to meet the demands of various industries.