A virtual data room – or VDR – is a secure cloud storage system that lets companies share sensitive files with third party. They provide a range of advantages to different industries which include the capability to work effectively and access documents at any point in time and secure storage of multiple versions of the same document.
Virtual data rooms can be useful in any industry where it is necessary to share confidential information with third parties. Due diligence in M&A fundraising, M&A and the first public offerings are a few of the most popular use cases. Virtual data rooms are particularly beneficial to the legal and healthcare industries, which deal with sensitive documents and sensitive information.
Due diligence in M&A requires potential buyers to go through extensive documentation. A VDR can speed up the process by providing features such as automatic indexing, search with full-text and role-based control. The VDR can also help M&A professionals to stay in compliance with the law, thanks to protocol reporting tools as well as robust security measures, like watermarking, encryption of data and virus scanning.
Fundraising and IPOs require high levels of collaboration between shareholders, and VDRs VDR can help with this process by providing efficient communication tools like comments sections and Q&A. Top-rated VDRs also allow you to track user activity with extensive reports and logging features. For pricing, the best online data room providers have pricing structures similar to cell phone and internet plans, offering a base cost and add-ons based upon feature set or the duration.