VDRs are a great tool for companies that want to conduct due diligence, cooperate with external parties, and ensure that their data is protected. They also offer a range of features that make them useful for M&A processes, fundraising and IPOs. These tools are used by many law firms and financial institutions. However, they can be useful in other sectors. For instance biotech and life science firms require a secure setting to work with customers and investors, while technology businesses need storage space to store their data in a safe and efficient way.

Real estate is yet another field that could benefit from a virtual data room. The industry needs plenty of paperwork and reports that need to be exchanged. Virtual data rooms allow real estate corporations to easily share audit accounts and reports with clients via an encrypted platform. The best VDR providers have advanced security features to ensure the security and privacy of files. These include redaction, which blacks out parts of a document to ensure personally-identifiable information remains confidential, and fence access, which prevents screenshots.

A VDR is also useful for private equity firms that have to handle numerous M&A transactions. A VDR is more secure than standard file-sharing apps like Dropbox or Google Docs. These are not intended to be used for M&A. The ideal solution has an easy interface and robust integrations and also the ability to customize permissions and an extensive auditing of user activity. It should also allow users to view files in various formats, and set up notifications.

best secure file sharing services