How to Select a Virtual Data Room for Your Industry

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

While certain VDR providers boast about their ability to serve every industry, the majority of vendors have a focus. To narrow the list, companies should look for vendors who provide testimonials from clients in their particular fields and a clear demonstration of the types of projects their software can handle.

Legal firms rely on VDRs to share privileged documents with attorneys, clients and other third-party parties for business and litigation. VDRs streamline the process of sharing documents between the parties involved in real estate or immovable property deals. Private equity and funds utilize VDRs to communicate with limited partners, auditors and portfolio company management.

Companies that are in the banking and financial services industry should look for a VDR provider that has the ability to customize the user interface with multi-language support as well as integration with existing IT systems. They should also take into consideration the kinds of documents and folders they will need to store and share. The vendor should also provide a variety of pricing models including per-storage and per-page and a flat monthly cost. Some vendors also offer a free trial or tiered pricing structure that allows customers to try the service prior to taking the plunge. A reliable VDR is user-friendly and has an intuitive interface that integrates robust features to meet the needs of diverse industries.

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