When a company needs outside parties to examine its information, whether for due diligence or collaboration it can be a challenge to share sensitive data without risking a breach or in violation of compliance. Virtual data rooms simplify the sharing of documents and automate processes so companies can effectively complete a variety of business functions.
VDRs are mostly used in mergers and acquisitions, however any business can benefit from an easy-to-use platform that centralizes files instead of sending them back and forth via email. Virtual data rooms can aid you streamline the process of raising funds from investors, or making preparations for an IPO. They also allow stakeholders to find the data they require in an systematic manner.
A good VDR will also permit you to restrict access to specific documents or folders. Many providers provide extensive logging and reporting features that monitor user activity, including who viewed which documents and when. A powerful search function and well-organized folder structure helps users navigate the information.
One of the most important features is the ability for users to design customized document views based on their job or duties. By granting specific viewing rights, you can ensure that only the required documentation is viewed and helps to prevent the loss of productivity due to miscommunication. Many providers also offer an interface for drag and drop that makes it easy to upload files.