A virtual dataroom, or VDR, is a secure cloud-based storage system that permits companies to share sensitive documents securely with third party. They provide many advantages to different industries including the ability to collaborate effectively and access documents at any time, and secure storage of multiple versions of the same document.
Virtual data rooms are beneficial in nearly every industry where it is necessary to share confidential information with third party. A few common uses include M&A due diligence, fundraising, and the first public offerings. However, the legal sector and the healthcare sector can benefit most from a virtual data room, since they typically deal with highly confidential information and sensitive business documents.
Due diligence in M&A requires potential 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 can also help M&A professionals to stay in compliance with regulations due to protocols reporting tools and robust security measures, like watermarking, encryption of data and virus scanning.
Fundraising and IPOs require the highest levels of collaboration between shareholders, and the use of a VDR can make this process easier with efficient communication tools such as comments sections and Q&A. Highly rated VDRs also allow you to track user activity with comprehensive reporting and logging features. Pricing is similar to that of cell phone plans and internet with a base cost and optional add-ons depending on the features or duration.