A virtual data room (VDR) is an online secure environment for storing and sharing documents that are highly confidential. It is used in a variety of sectors to facilitate better collaboration and communication between many parties outside the firewalls of companies. Common applications include M&A due diligence, litigation, bankruptcy, fundraising, and audits.

When choosing a VDR make sure that it is multi-level authenticated https://6dataroom.com/what-are-the-different-types-of-due-diligence/ with specific permissions settings which can be adjusted to meet your needs. You should look for a VDR that is able to check the type of device, IP address and location as users log in. This will ensure that your data can’t be accessed by a unauthorized device. Two-factor authentication is an additional feature to take into consideration. It requires a password as well as additional information or codes.

Finally, locate the VDR which can track the activity of documents and provides customizable reporting. This will help you determine who accessed which documents and conducted searches. This functionality is usually found in the base features of a good VDR or you could add it as an extension to existing solutions.

The most reliable online VDR will assist you in completing your corporate transactions in a secure and efficient manner. Before you sign up, you must be aware of the security features, file-sharing capabilities, certifications and customer support that a provider offers. In addition, you should test the VDR before you commit to a contract by requesting an opportunity to try it for free and then asking to have it set up for several members of your team.