www.dataroomhub.com/what-is-virtual-data-room/
A virtual data room (VDR) is a safe online environment that can be used to share large amounts of confidential information outside of the firewalls of corporate offices. VDRs can be used to aid due diligence in M&A transactions as well as bankruptcy, litigation and fundraising.
The ease of use of a VDR can be the difference between a successful or unsuccessful agreement for all parties. If the system requires a steep learning curve then it’s going to be more difficult for participants to upload, save and manage files which will ultimately slow down the process and possibly causing delays in negotiations.
A well-organized data structure in a VDR is also essential for quick access and efficient collaboration. Organizing documents into tags and folders will allow users to locate information quickly and efficiently. In addition, implementing features like real-time commenting or annotations can speed up the pace of discussions.
The most effective VDRs provide granular permissions for documents that allow administrators to define access rules down to individual file level. This includes features such as redaction, which blacks out areas of a file so that personally-identifiable information remains private. Additionally, the best VDRs will be certified as secure like ISO 27001, SOC 1/2/3 GDPR, and HIPAA. They’ll also have a range of formats and cross-platform compatibility. This lets users work with a variety of devices and platforms, reducing the amount of time switching between different applications.