A virtual data room (VDR) is an online secure storage solution which allows companies to store, manage and share confidential documents with various parties. It is primarily used for M&A (mergers and acquisitions) due diligence, but a VDR can also be used to manage any business transaction or undertaking which involves sensitive data.

The best virtual data rooms have a simple, intuitive interface that allows for the simple management of large quantities of files. They facilitate the efficient handling of many file information management strategy enhanced by VDR formats, including video, text, and images and offer the ability to set permissions in a way that allows administrators to control the access of users to print, view or download documents. They also have watermarking and redaction tools that help protect privacy and intellectual property.

Consider how adaptable the virtual space is to various operating systems and devices when choosing one. It must be compatible with iOS and Android, without the requirement for additional plugins. In addition it should allow for bulk uploads, using drag-and drop functionality. It is also worthwhile looking for folder templates that will ensure a logical filing structure. Users can navigate the virtual dataroom more easily by creating a folder named “Finance” and subfolders for every financial statement. It is also recommended to utilize a file type recommendation system for uploading and storing files. This will save users time and effort since they can upload files directly into the folders. Furthermore, a system that suggests file names with underscores between words can be beneficial since it makes it easier to search and locate files using keywords.