A virtual data space allows businesses to save, share and protect proprietary documentation. The majority of the time the VDR is used in due diligence in M&A and capital raising, however, it can also be used by law firms to share privileged documents with clients and other parties in litigation. Life science and biotech companies frequently use a VDR in order to collaborate with investors, as well as for clinical trial document sharing.

Selecting the right VDR partner depends on the particular requirements of each business. Investment bankers need an encrypted platform for transactions such as IPOs and capital raising that require significant sharing of information. They need to find a VDR with a user-friendly interface that is simple to use and has the tools required to make transactions swiftly.

Another consideration is whether the VDR provider provides round-the clock client support. Since deals and other vital business processes don’t operate in a 9-5 timeframe, the best providers provide 24/7 support that is multilingual to help clients and customers succeed.

When data rooms you’re looking for security, choose a company that offers robust features that include malware scanning and multifactor authentication. Security is also maintained through a robust permission system that permits administrators to set up access rights based upon the roles and duties. To prevent data leakage, you should also look for a VDR with watermarking and print/download security. There should be a variety of reporting and analytics options that give you the most complete picture of the user’s activity.