A virtual dataroom (VDR) uses cloud technology to let users share sensitive information within an environment that is secure and controlled. It can speed up the process of complex transactions and ensures that those involved in transactions are able to access the required documents in order in order to meet their obligations. It also allows both parties of a deal access to the same documents in order to complete due diligence. This protects sensitive information from falling into the wrong hands.
VDRs are commonly utilized during M&A due diligence, fundraising, especially biotechnology licensing and tender processes. There are numerous other ways that a company can benefit from using a VDR.
In a typical dataroom the files are organized in groups so that users can easily navigate. In some cases, files are further classified according to security level, phase of the project or how a data room can help businesses department. This is a time-consuming task that can only be performed manually unless the program offers intuitive ways to automate repetitive tasks.
A VDR should also be able to transfer or receive files from any platform, without the requirement to download or upload them. This helps to reduce IT overheads and decreases the risk of security breaches. It is also important that the VDR has access privileges that are granular as well as watermarking and audit trails to ensure that only authorised users can access sensitive documents.
It is also important that the VDR can be integrated with other tools of business, including those that are used for due diligence, like email and cloud-based storage. This allows teams to collaborate more easily and saves time by not having to switch between several applications.