A virtual dataroom (VDR) acts as an electronic repository for sensitive and important information. It is used to ensure secure due diligence in corporate transactions, and to offer a convenient way to communicate documents to a variety of stakeholders.

The most frequent use of VDRs is during M&A, in which private documents are exchanged between the two parties of an agreement. Financial records, tax documents and contracts, confidential information and intellectual property are all covered. This information should be easy to access however, it must be secure from unauthorized access.

When choosing when choosing a VDR, look for one with robust security features staying ahead of the game with digital data room such as the ability to grant user-level permissions, multi-factor security access expiration and revocation mobile device management, document tracking and an audit trail of all activities. Make sure that the provider is accessible during normal business hours to answer any questions or concerns.

It is also important to look at how it is to upload and download large file sizes. Some vendors have a drag-and drop feature that could speed up the process. This is beneficial for larger projects. Also, check how it is easy to view activity reports which can help a user stay up-to-date on document activity.

Additionally, a top vendor will also have a range of collaboration tools and communication tools such as comments, Q&A sections, and live-chatting. This can boost team efficiency and improve workflow.