The key to building a powerful virtual data room is a structured and logical file structure, with clear, informative title for each folder. Users are able to easily find what they're seeking. It is also beneficial when documents are organized in a consistent and clear format (e.g. Text documents in PDF and financial documents in Excel will help you view the files.

Another important aspect is the granularity online data storage enhancing project collaboration of permission levels to stop document leakage and exfiltration. VDR software allows teams to be divided into groups based on their role in due diligence. For instance, "management" or "finance" can be granted access.

A VDR should also be intuitive for all users, including investors and founders who aren't tech-savvy. The process of searching and navigating the VDR should be effortless and take only a few minutes, as if you were navigating a Dropbox. Similarly, the tool should support non-proprietary file formats and facilitate collaboration with other parties.

The most powerful VDRs come with advanced functionality to simplify and streamline crucial business processes, such as M&A diligence or the IPO. A virtual data room that integrates project management and a powerful OCR engine is able to automatically read PDFs or other documents. This is a crucial feature in M&A diligence workflows. The best solutions provide 24 hours technical support so that experts can be consulted immediately in the critical phases of a transaction.