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A virtual data room is a computer program that allows companies to share sensitive documents in a secure manner. The most reliable online VDR services let users control access rights and permissions monitor usage metrics, create dynamic watermarks and more. These features allow companies to comply with regulations and protect information from unauthorized access and misuse.

Mergers and acquisitions are a essential element of many business operations. The sell-side and buy-side of M&A transactions typically require thorough due diligence, in which both parties must look over enormous volumes of data. By using a virtual dataroom to simplify the process, companies are able to complete deals more efficiently and minimize risk.

Online document repositories may also be used for fundraising. Startups and small businesses that seek capital can benefit from the ease of access that virtual data rooms offer potential investors. This allows for more dependable decision making and reduces the time required to raise capital.

Some of the best VDR services on the market offer an affordable pricing model. Some vendors offer plans that are based on how many GBs each project needs. This can be a great option for companies who don’t require a large amount of storage capacity initially. Others offer a subscription per user that is ideal for businesses that must limit the number of users that can access an application.

It’s also important to confirm whether the service supports the file formats your team often uses. Some providers only support a few formats, while others offer a variety. Other features worth looking for include bank-level 256 bit encryption (256 bits) as well as two-factor authentication (two-factor authentication) along with in-platform view and workspaces that can be customized.