Virtual data rooms are a safe platform for managing, storing and sharing sensitive documents during transactions. All VDR providers provide the same basic features however certain specialize in particular transactions or industries. Additionally, they frequently offer a range of additional functions to make their software more efficient and user-friendly.

VDRs can also aid in raising funding by allowing investors to look at the financial details of a private company. This increases the chances of a venture being successful. They are especially useful in due diligence, when every detail about a business must be reviewed.

When choosing the right VDR for M&A, teams should consider the amount of storage they’ll require and the amount of data that each party can access in the digital workspace. They should also consider the permissions for the VDR, including the ability to limit certain files to “view-only” and to assign specific roles.

Other features to look out for in the VDR include drag-and-drop uploading, auto indexing and document numbering, an optical character recognition software that can perform full-text searches across all uploaded files, dynamic watermarks that appear on top of each file when it is viewed printed, downloaded, or downloaded, and the option to customize brand colors and logos. Some VDRs require that all users sign a nondisclosure agreement prior downloading any information which adds another layer of security.

The best VDR firms have multiple security certifications, including ISO 27001, SOC 1/2/3 GDPR, and HIPAA. In addition they should allow users to set their own security levels and create an invisible fence that blocks out certain sections of the document to stop screen-shotting. They should provide support via live chat, email or phone.