A virtual data room is a repository online to store and distribute documents that can be shared, organized and tracked all within the administrator’s control and discretion. This makes it perfect to support complex business processes and projects that require disclosure of confidential documents to parties outside of the firewall.
Online data rooms are frequently used in M&A transactions, in order to assist buyers in their due diligence. having all relevant documentation all in one place allows for faster and more efficient review, and helps ensure that confidentiality is maintained.
Investment banks are among the biggest users of VDRs. They can be used by both the buy-side as well as sell-side in financial transaction processes like mergers advice and acquisitions. They frequently need to access and review large amounts of sensitive files, requiring an efficient storage system and a simple collaboration with many stakeholders across multiple locations and time zones.
Life science companies operate in highly controlled environments, and have several shareholders and partners. They also have to share sensitive information on a regular basis. They frequently need to raise funds or prepare for an IPO. VDRs provide a secure platform for sharing and collaboration, with a detailed activity tracker for users to identify who has accessed the documents.
Top data room providers offer a range of features to streamline collaboration and management of documents, including a streamlined user experience, easy multi-project management, the capacity to assign specific permissions to different users, and a 24-hour dedicated support team. Many data room providers offer flexible pricing, including an annual subscription that allows for the possibility of a lower cost per project as well as the flexibility to begin or stop projects at any time.