A virtual data room (VDR) is an online platform used to exchange documents with multiple parties. This type of tool can be utilized for M&A but is also great for finance management and real estate deals.

It’s crucial to analyze your business needs and then compare the available options before deciding on a VDR. Understanding the security implications of different solutions is equally important. A reputable provider will go beyond the normal compliance measures and provide features like two-factor authentication and expiration dates for access and IP address restrictions. They should also offer additional support services to increase efficiency and reduce costs.

VDRs can also be beneficial for law firms and other businesses who must adhere to strict requirements of compliance or share confidential documents. They can utilize the virtual data room to monitor file activity, set access rights to documents, and establish a more organized workflow. Some providers provide additional features like document scanning, watermarking, and archiving.

Startups often have many different hats, and do not have time to study complex platforms or navigate an awkward interface. Choose a platform that is simple to use and provides 24/7 support. The top VDRs for startups include iDeals, BrainLoop, Watchdox, Merrill Datasite, Digify and Ansarada (freelancers). They can also avail of a free trial to try out their options prior to uploading sensitive information.