Virtual data rooms are an encrypted platform for sharing confidential information. Most commonly, they are utilized in M&A transactions. However, their advantages can be used in various scenarios.

Investment bankers use VDRs as a way to support the purchase and sell sides of financial transactions. These processes require large quantities of document exchange and a VDR can be the difference between an efficiently streamlined process and one that’s inefficient and compromises deal success.

Litigation processes require a lot of documents and a high degree of security, which is why many companies opt to work with VDRs. The ability to grant external parties access without risking possible breach or creating compliance issues is an important benefit of VDRs. The same applies to the real estate industry, which must share a large amount of documentation with potential buyers.

When choosing a service provider be sure to look for security features that ensure the safety of your documentation for example, multi-factor authentication and granular document permissions time and IP access restrictions, and watermarks that can be customized. Also, look for compliance certificates to verify that the solution you choose meets top standards.

If you are aware of the features you require then you can select an online vendor that offers an unrestricted demo and various user-friendly features. For example, iDeals VDR comes with in-app chat and phone support It also supports multiple languages and an extensive activity log and offers easy customization options for every project. This makes it a great option for companies dealing with sensitive or complex data.