As opposed to generic file sharing solutions virtual data rooms offer professional-grade security, control, and functionality to facilitate online due diligence documents, document collaboration, and other essential processes. They are a preferred tool for enterprises in multiple industries that require absolute security and ease of use when sharing confidential documents with other parties outside of the firewall.

Based on their field of operation, businesses can benefit from various features offered through the majority of VDR vendors. For example, life science companies often utilize VDRs to share VDR to share HIPAA compliant documents with investors who are interested in demonstrating the results of clinical trials, or research and development details. Biotech companies too employ a VDR for managing their intellectual property and simplify M&A deals with detailed activity monitoring.

Another feature that is commonplace is the ability to use watermarks or set expiration dates, and remove access remotely for digital rights management (DRM). Certain providers let users organize their files according to an organization structure that is similar to the traditional file system. This lets them categorize their files in a logical way and makes searching easier. Other important features include an audit trail that gives insight into the way documents were accessed by whom and at what time.

Most VDR vendors offer trial trials for free to give businesses the chance to test their platform and understand how it functions prior to signing up for a full-time subscription. During this period they can also compare data on reliability and performance to determine which vendors are able to meet or exceed expectations. It is also crucial to look at the level of support each vendor provides for their solution. As transactions and business processes do not operate on a 9-5 timetable it is essential to select a provider that offers round-the clock support.