A virtual data room is a tool that allows document sharing in any scenario that requires professional and secure administration and distribution of files. VDRs are usually employed in mergers and acquisitions. However they can also be useful in strategic partnerships, raising money, IPOs, and legal processes.
In the past, it was common for individuals involved in due diligence or legal procedures to visit a physical place and spend hours looking through piles of papers. A virtual data room removes this inconvenience and provides an easy-to-use experience for all parties. Furthermore, finding a specific document takes just only a couple of clicks using the aid of advanced search engines.
Another significant function of the virtual data room is its capacity to support complex communication and collaboration in negotiations. A leading pharmaceutical firm, for example, used a virtual dataroom to complete a complex merger between an industry giant and an established pharmaceutical company. Because of the streamlined process for communication and enhanced data security offered by the platform, both companies were able complete their merger with little rework.
Furthermore, a digital data room is able to offer more thorough and transaction-focused analytics than cloud storage. For instance, while cloud storage apps provide basic access statistics such as usage statistics and access to, VDRs allow admins to grant more granular permissions to specific documents or folders as well as to track the activities of users on an individual basis, such as who is viewing which document and for the length of time. VDRs also allow administrators to restrict the instances a user can connect, the duration that he or she is able to use the platform, and even restrict access by IP address.
