A virtual data room or VDR is a secure cloud storage solution that lets companies share sensitive files with third-party. They offer a number of advantages to different industries, including the capability to collaborate effectively and access documents at any point in time and securely store multiple versions of the same document.
Virtual data rooms can be useful in almost any industry where it is necessary to share confidential information with third parties. Some common use cases include M&A due diligence, fundraising and even initial public offerings. However, the legal industry and the healthcare sector can benefit most from a virtual data space because they often deal with highly confidential information and sensitive business documents.
Due diligence in M&A requires prospective buyers to review extensive documentation. A VDR can simplify this process by offering features like automatic indexing, search-full-text search and role-based control. The VDR also helps M&A professionals to be within the regulations, thanks to protocol reporting tools as well as robust security measures, like watermarking, encryption of information and virus scanning.
Fundraising and IPOs require the highest levels of collaboration between shareholders, and a VDR can help with this process by providing efficient communication tools like comments sections and Q&A. Additionally, top-rated VDRs permit you to monitor all user activity through comprehensive logging and reporting functionalities. Pricing is similar to cell phone plans and internet with a basic price and optional add-ons dependent on the features her explanation or duration.
