Virtual due diligence rooms are cloud-technology-based platforms that facilitate and expedite the deal-making process. By allowing multiple parties to examine documents at the same time from a central online location, virtual due diligence rooms reduce the time and cost of exchanging physical documents. They are also more efficient and secure than traditional methods of exchange of information.

VDRs are widely used in a variety of industries from financial services to healthcare. They are particularly useful in capital raising, M&As, initial public offerings (IPOs) and divestitures. They allow law firms and investment companies to keep, share and access private information easily and securely. As opposed to typical cloud storage options, the virtual due diligence room includes numerous additional features that provide more than an archive of files.

Document versioning is a key feature. This ensures that the latest version of a document is always accessible to review. A VDR also helps to prevent printing that is not authorized, which could pose a security risk in M&A transactions as well as other transactions that are considered sensitive. The most recent versions of VDRs also come with AI features that can increase efficiencies and speed up review of contracts. DFIN Venue, for example provides a range of automated tools, such as auto-indexing and full-text search.

Selecting the most suitable VDR for due diligence requires knowing the features that will benefit your specific needs and goals. Find a platform that is user-friendly interface and integrated support services to avoid paying for solutions that do not meet your needs. Then, take advantage of trial periods to test how the software performs in action and make sure that it meets your expectations.