A VDR (also called an electronic data room) is a secure online repository that enables efficient document sharing. It is a crucial tool for companies involved in any type of transaction, from mergers and acquisitions to raising capital or a public offering.

To get the most value of a VDR, companies should prioritize features that make the system easy to use and understand. While there is a learning curve with any new software, a simple interface with intuitive features speeds up due diligence and collaboration. A VDR must also work with a variety of devices, including smartphones and tablets. Consider options for support such as live chat on the app or phone or email multilingual customer support, and helpful knowledge bases.

It is important to consider the type of files that you’ll be storing while selecting the VDR. The most popular use case is M&A which requires a lot of documentation and analyzing. Private equity and venture capital firms usually review multiple deals at one time and bring a plethora of documents that require an organized system. A VDR streamlines the file-sharing process for these parties. It speeds up diligence and provides clear paper trails.

Other common VDR use cases include IPOs and intellectual property management. Technology companies might be required to reveal proprietary code and other confidential information to investors and investors, and a virtual information room can be a better method features of the virtual data room to examine this information. For this reason it is important to have a VDR can assist in ensuring that only authorized parties are able to access the data.