Virtual data rooms (VDRs) are online storage spaces for sharing and storing documents. Cloud-based secure storage solutions enable businesses to share documents with both internal and external parties and fulfill compliance and regulatory requirements. They are often used for M&A due diligence, capital raising, strategic reviews and tenders.
Companies in the life science and technology industry are among the heaviest users of VDRs However, businesses from every industry have requirements for managing documents. Most data rooms permit administrators to create granular permissions and control access to files. They also offer users tools to alter their projects’ appearance and functions with branding options, watermarking here and specifying document labels. In addition, they support a variety of file formats and also provide full-text search and indexing functions that make it easier to locate important information.
After choosing an VDR, a company will have to transfer its existing documents into the new system. This is usually accomplished with a simple drag and drop process which doesn’t require complex IT expertise. Users can upload large amounts of information with only one click. The reordering function allows users to easily rearrange files and folders after documents have been imported. Data rooms generally can track who has viewed what documents.
VDRs are an affordable alternative to physical storage spaces for documents and traditional methods of meeting. They eliminate the necessity for paper and eliminate the need for rental, courier services and travel expenses. They also help reduce time used in planning meetings and conducting due diligence by giving you immediate access to documents from anywhere.