The virtual data room market is growing at a compound annual growth rate of 14.70% and is projected to hit the revenue of US $3.63 billion by 2026. Factors such as a surge in need for risk management, intellectual property, increased volume of business data due to complexities arising from mergers and acquisitions fuel the growth of the VDRs market. Businesses of all sizes have moved away from relying on physical documentation and embracing digital-driven SaaS solutions. Find out why setting up a virtual data room can be the answer to your organization’s woes! What is a virtual data room? Virtual data rooms are online repositories used for storing and sharing confidential corporate information outside the corporate firewall. Also, VDRs give users full control over who can access the database, which makes virtual data rooms extremely helpful for facilitating important financial transactions such as M&A, IPO, fundraising, and many more. Why virtual data room plays such a significant role in contemporary deal-making: Here’s why businesses across the globe prefer virtual data room SaaS solutions: Almost 90% of due diligence can be managed within VDRs.Cut down the cost of paper documentation by almost 85%.Ensures 99.9% data security.Reduces the time spent on conducting due diligence by 40%.90% efficient than traditional data rooms. What to consider when opting for a virtual data room provider? Finding the best data room solution for your business is crucial for the success of the project. Prior to investing in virtual data rooms; consider the following key features to narrow down your search of data room providers: Technical support. Communication channels, response time, availability of customer support, & the ability to get a dedicated team to guide you through your VDR experience are some of the key factors you need to keep in mind when evaluating the effectiveness of data room providers.Expertise. Opting for virtual data room SaaS solutions boils down to the size of the company, your purpose, industry specifics, etc. Are you okay with pre-established virtual data room plans or looking for tailored and flexible VDRs solutions? Outlining your requirements will help you choose the best. Hence, always opt for a digital data room that has already assisted in similar projects and businesses.Deployment. Technological deployment is one of the most important indicators when evaluating the value of virtual data room service providers. Ideally, the solution should be equally functional across all utilized platforms, including Linux, iOs, macOS, Android, Windows.Price vs. Quality. It's very important to double-check the availability of certain features for a set fee. For instance, what's available at one vendor's price might be available at an additional cost if you switch to another one. Of course, the pricing structure of the data room providers varies based on the basis of services they provide and the clients they cater to.Although we fall for the solutions with a low price tag, for business operations, it's not viable to decide on the price alone. Instead:Evaluate the size, specifics, and needs of your project.Look out for hidden charges. What functionalities should a virtual data room have? Functionality and the overall concept of VDRs are very much similar. However, every data room service provider and virtual data room has certain features that cater to the need of specific uses. Nonetheless, here’s a list of some of the key features offered by the best data room providers: Ease of use. An ideal solution should be easily accessible; you don’t necessarily have to be tech-savvy to use it. The virtual data room interface is straightforward if:You can easily scroll and swipe the documents within the data room.You can access the data room from mobile devices such as Android and iOS.You can enjoy the multilingual user interface of the data room.You do not need any additional plug-ins to run the system.Document management. The virtual data rooms are most efficient when you can seamlessly manage documentation. Look for the following features:Full-text searchDiverse format compatibilityDrag-n-drop featureBulk uploads/downloadsCustomer support. It is one of the most crucial criteria you need to look for when choosing a data room provider for your business. The key features you need to go for include:Contact channelsLive chat optionCall center availabilityPersonal manager for assistanceQuick response timeCustomization. Your VDR should look like a part of your business entity. Hence, data room providers offer the ability to customize the system that goes with your company. Some of the features that allow you to customize the data room include:Dynamic watermarksBrand logos and colors to be addedAutomatic translation on requestInnovative tools. Virtual data rooms are often used as meeting spaces. Hence, to enhance collaboration and work engagement, VDR providers work on offering intuitive and innovative features. This tool set usually comes with:Report generatorFrequently asked question sectionLive discussionRestriction of access to specific usersDocumentation security. The best virtual data room providers have been working on adding layers of security that may include:End-to-end encryptionRemote shreddingSnapshot and download restrictionsWatermarksSecurity access. The most effective virtual data room will give you the ability to adjust access control for all. Yes, you can limit access to any file within the VDR or set a priority framework. Here’s what comes with the data room:Multiple-factor authenticationAccess controlTime-based self-destruct filesIP and time restriction Final verdict If you are looking to master one tool that will not just help you in M&A transactions but boost productivity and overall efficiency — VDRS is your go-to thing.