Contrary to free file sharing software that let users store files on their computer, data room providers are specifically created for business use and come with high-end security options such as virus scanning, encryption, firewalls, fetch view and access restrictions based on role. They also provide the ability to create workspaces that contain all of your company’s data in one place, making data management collaboration much easier than ever before.

The most common use of a virtual data room provider is in M&A transactions in which companies exchange confidential information with third-party companies. By facilitating the exchange this information, it VDR reduces the time needed for due diligence and allows parties to make more informed decisions quicker. A VDR is also useful to raise funds. Businesses must provide confidential information to potential investors. Startups and companies can give investors access to financial and critical documents in a secure environment by using the virtual dataroom.

To find a reputable provider Look for one with an established reputation and a range of features. For instance, a great VDR will come with advanced search capabilities that includes full-text searches that makes use of optical character recognition (OCR) for PDFs and images. It should also have a dynamic watermark that will prevent unnecessary duplication and sharing.

Brainloop, a well-known virtual data room (VDR) provider, offers the same features but in a more flexible and user-friendly manner. This includes the ability to personalize your data space with colors and logos, as well as branded emails and notifications.