A virtual data room – or VDR is a safe cloud storage system that allows businesses share sensitive documents with other companies. They provide a variety benefits for different industries. They include the ability to collaborate effectively and access documents at any time and safely store multiple copies of the same document.
Virtual data rooms are beneficial in any industry that requires to share confidential information with third party. The most frequent use cases are M&A due diligence, fundraising and initial public offerings. However, the legal industry and healthcare sector profit the most from a virtual data space as they frequently deal with highly confidential data and sensitive business documents.
M&A due diligence requires extensive documentation review for buyers, and a VDR can aid in this process with features such as automatic indexing, full-text searches and access control based on role. The VDR can also help M&A professionals stay within the regulations, due to protocols reporting tools and robust security measures, like watermarking, encryption of data, and virus scanning.
Fundraising and IPOs require high levels of collaboration between shareholders, and a VDR can help with this process by providing efficient communication tools such as comment sections and Q&A. Highly rated VDRs also allow you image and text recognition in computer vision to track user activity with comprehensive reporting and logging capabilities. Pricing is similar to cell phone plans and internet with a basic price and optional add-ons dependent on the features or duration.
