A virtual dataroom, also known as VDR is a secure cloud-based storage solution that allows companies to share sensitive files securely with third party. They offer a number of benefits to different industries, for instance, the capability to collaborate effectively and access documents at any time, and secure storage of multiple versions of the same document.
Virtual data rooms can be utilized in nearly any industry which requires sharing confidential documents with other parties. Common use cases include M&A due diligence, fundraising, and the first public offerings. Virtual data rooms are primarily beneficial to the legal and healthcare sectors that deal with sensitive documents and highly confidential information.
M&A due diligence requires extensive documentation review for buyers and a VDR can aid in the process by providing features such as automatic indexing, full-text search and role-based access control. The VDR also assists M&A professionals remain in compliance with virtual data room regulations, thanks to protocol reporting tools and strong security measures like watermarking, encryption of information and virus scanning.
Fundraising and IPOs require high levels of collaboration between shareholders, and VDRs VDR can make this process easier with efficient communication tools like comment sections and Q&A. Top-rated VDRs also allow you to monitor user activity using comprehensive reporting and logging capabilities. Regarding pricing, the best online data rooms offer cost structures that are similar to internet and cell phone plans, offering the base price and add-ons based upon feature set or time.