It isn’t easy to share sensitive data with third parties, whether it is to facilitate due diligence or collaboration, or even to avoid the risk of a breach of compliance. Virtual data rooms facilitate the sharing of documents and automate processes so that companies can efficiently complete a range of business functions.
VDRs are mostly used in mergers and acquisitions, however any company can benefit from a simple platform that centralizes files instead of sending them back and forth through email. Virtual data rooms can help you simplify the process of obtaining funds from investors, or preparing for an IPO. They also allow those involved to find the information they require in a organized manner.
A good VDR will allow you to limit access to specific documents or folders. Many providers provide comprehensive report and logging tools that monitor user activity, for example, who has viewed which documents and when they viewed them. A robust search function and well-organized folder structure helps users navigate through the data.
One of the most important features is the ability for users to design custom document views based on their role or responsibility. By granting specific viewing permissions, you can ensure that only the relevant documents are viewed to avoid miscommunications and lose productivity. Many providers also offer an interface that allows drag and drop that makes it simple to upload data.