A virtual data room (VDR) is an online, secure space for storing and sharing time-critical documents. Banks and other financial institutions make use of it to aid small business software review due diligence in M&A, licensing, loan syndications, and venture capital transactions. The VDR gives a central location for multiple parties to review documents and access them at the same time. It also has the ability to control security in a granular manner. It also allows real-time collaboration for projects that have complex workflows. It can be hosted in the cloud or on-premises and can be integrated with existing systems for easy deployment.

VDRs are more robust than the standard file-sharing software which is perfect for simple projects, but not enough for more complex projects such as due diligence. They feature robust features to ensure security and a smooth process. They can help avoid costly miscommunications and delays due to improper revisions and lost files by preventing sensitive data from being shared by non-authorized individuals. Furthermore, they can assist in helping prevent costly information breaches and compliance violations by providing a central repository of all data.

Choose a provider that has a flexible pricing structure and a user-friendly interface. You pay only for the space you need with a per-storage pricing option. Some providers offer flat-rate options which eliminate overage charges and provide a predetermined spending budget.

The most well-known VDRs include Firmex from iDeals as well as Intralinks. iDeals provides an intuitive interface and powerful tools to help make the M&A process faster and easier for all parties. Its integration of DocuSign and e-signature will save you time and also provides unlimited users and storage for a low price. Its powerful analytics and automated reports provide an insight into the activity, making sure that everyone knows what’s happening at any given time.