A virtual data room (VDR) is an encrypted repository for sharing and storing confidential data. It helps with due diligence, M&As, tenders and capital raising rounds by enabling the more systematic review of documents in a controlled environment. It also offers a greater level of security than email when communicating with outside parties and reduces the risk of sensitive information being released or lost in transit.

A VDR typically has an easy interface and 24-hour support. The most effective VDRs are user-friendly and require little training. They offer a variety of features to aid in due diligence and make it easier and faster, such a secure communication with others as well as granular permissions for documents and Q&A management, as well as customizable NDAs.

Many providers also offer various pricing models depending on the amount of features, users, or the size of storage. Pay per feature is a great option for smaller projects or one-offs. For large-scale projects and long-term usage the option of subscription plans is more relevant.

Firmex is a secure file-sharing platform that provides data room providers a high degree of security, which is suitable for M&A due diligence. It supports a variety of file formats and is SOC 2 and HIPAA compliant and has an intelligent search function with multi-level user access control, advanced activity tracking and alerts about usage. Its infrastructure is secured by security measures that include data encryption, 24-hour data recovery, virus scanning, and a secure online repository.