Virtual data rooms act as an secure place to store and manage confidential documents during transactions. All VDR providers offer the same basic features, but some specialize in particular industries or transactions. They also usually provide a variety additional functions that make the software more efficient and easier to use.

VDRs can also assist in the process of raising funding by making private financial details about a company accessible to potential investors on a view-only basis, which increases the likelihood that a new venture will succeed. They are particularly helpful in due diligence, when all details about a company is required to be scrutinized.

When choosing the right VDR for M&A, teams should consider how much storage they will require as well as the amount of data that each person can access within the digital workspace. They should also consider the settings for permissions in a VDR for instance, the ability restrict the access to files to “view only” and certain user roles.

Other features to look for in a 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 documents, dynamic watermarks that appear on top of every document when it is opened printed, downloaded, or downloaded and the option to add custom brand colors and logos. Some VDRs require users to sign a nondisclosure agreement prior to downloading any information. This provides an additional layer of security.

The most reliable VDR providers are certified for security, such as ISO 27001 and SOC 1/2/3. They also meet GDPR, HIPAA, and other regulations. They should also allow users to set their own security levels, and also create a fencing view that blocks sections of data room ma documents to stop screen captures. They should be able to provide support through live chat, email or telephone.