When a company requires outside third parties to look over its data, be it for due diligence or collaboration it can be difficult to share sensitive information without risking a breach or in violation of compliance. Virtual data rooms simplify and automate processes to assist companies in completing various business functions.
VDRs are most commonly used in mergers and acquisitions. However, any business can benefit from a simple platform that centralizes files instead of sending them back and forth via email. If you’re trying to raise funds from the latent power of economic sanctions investors or prepare for an IPO using a virtual information room can help streamline the process and help all stakeholders find the information they need in an organized way which reduces the chaos of communication.
A good VDR can also let you restrict access to specific documents or folders. Many providers offer extensive reporting and logging capabilities that monitor user activity and activities, such as who viewed what documents and when. In addition, a powerful search feature and logical file folder structure allow users to navigate their way through the documents and find what they’re looking for quickly.
Another key feature is the capability to create custom document views for users based on their role and responsibilities. By granting specific viewing rights, you can ensure that only relevant information is seen and helps prevent the loss of productivity due to miscommunication. Furthermore, many providers provide drag-and drop interfaces that make it easy to upload and organize data.