A virtual data room or VDR is a safe cloud storage solution that lets companies share sensitive data with third parties. They provide many benefits to different industries, for instance, the capability to collaborate effectively, access documents at any time, and securely store multiple versions of the same document.
Virtual data rooms can be used in nearly any industry that requires sharing confidential information with other parties. Some common use cases include M&A due diligence, fundraising and first public offerings. However, the legal industry and healthcare industry benefit the most from the virtual data room because they are often dealing with highly confidential information and sensitive business documents.
Due diligence in M&A requires potential buyers to look over extensive documentation. A VDR can make this process easier by offering features like automatic indexing, search full-text search and role-based control. The VDR also helps M&A professionals remain in compliance with the law, by using protocols reporting tools and strong security measures, including watermarking, encryption of information and virus scanning.
A VDR can facilitate this collaboration by providing efficient communication tools, such as comments sections and Q&A. Top-rated VDRs also allow you to track user activity with comprehensive reports and logging features. As for pricing, the top online data room providers have cost structures that are similar to internet and cell phone plans, offering a base cost and additions based on the feature set or the duration.
