When a company requires outside individuals to review its data, be it for due diligence or collaboration it can be a challenge to share sensitive information without risking breach or violating compliance. Virtual data rooms streamline document sharing and automate processes so that companies can successfully complete a variety of business activities.
VDRs are typically used in mergers and acquisitions, however any business can benefit from an easy-to-use platform that centralizes data instead of sending them back and forth via email. Whether you’re looking to raise funds from investors or prepare for an IPO, a virtual data room can make the process easier and help the stakeholders locate the information they need in a way that cuts down on confusion in communication.
A reliable VDR should also allow documents with granular permissions, which limit access to certain documents or folders. Many providers offer extensive reports and logging tools which track user activity, including who viewed what documents and when. Additionally, a robust search feature as well as a an organized structure for files makes it easy for users to navigate their way through the information and find what they’re looking to find quickly.
Another key characteristic is the ability to design custom document views for users depending on their role and the responsibilities they have. Providing specific viewing permissions ensures that only relevant information is viewed and helps to prevent confusion and loss of productivity. Many providers also offer an interface that allows drag and drop that makes it easy to upload data.