Virtual Data Room Software provides an environment that is secure to collaborate and share time-sensitive documents. It is typically used for M&A due diligence as well as fundraising and ad-hoc project collaboration.

The best online data rooms have a multilingual interface, as well as great customer support. They also allow integrations with third party companies to maintain workflows. Additionally, the top VDRs come with a free demo which allows prospective customers to test out the platform before signing up for a subscription.

When selecting a data room it is important to think about a range of features that are designed to increase security and speed up the deal management process. This includes redaction, a feature that blacks out areas of files to ensure personally-identifiable information stays private, and fence view, a function that covers documents with digital frames next to prevent screenshotting. Additionally, the best online data rooms are backed by a variety of security certifications, such as ISO 27001, SOC 1 and 2, GDPR and HIPAA.

Utilizing a virtual data space to conduct M&A due diligence can dramatically speed up the process and increase transparency by making it easier to share and analyze documents. It is important to remember that this tool is not a replacement for the use of email or file sharing platforms like Dropbox. The tools don’t provide the advanced features of auditing, permissions or watermarking features of a dedicated virtual room. Therefore, they are unlikely to deliver the professionalism required for M&A due-diligence.