A virtual dataroom is a repository online that allows documents to be archived as well as distributed and tracked under the direction and discretion of the administrator. This makes it perfect to support complicated business processes and projects that require the disclosure of confidential documents to people outside of the firewall.
Online data rooms are commonly used in M&A transactions to assist buyers with their extensive due diligence. The fact that all relevant documentation is in one place enables faster and more efficient review, and ensures confidentiality is preserved.
Investment banks are the most frequent users of VDRs which aid both sides during financial transaction processes like mergers and acquisitions. They often need to access and review large amounts of sensitive data, requiring reliable storage and easy collaboration among several stakeholders from different locations and time zones.
Life science companies operate in highly regulated settings with multiple investors and partners and are required to share a lot of sensitive documents regularly. For instance, they frequently are required to prepare for an IPO or raise funds. VDRs offer a secure environment to share and collaborate, with a detailed activity tracker for users to identify who has accessed what files.
The top data room providers offer a variety of features that make document management easier and facilitate collaborative work. They include a simplified user interface, a simple multi-project management with the ability to customize permissions for each user, as well as a 24/7 support team. Many data room providers offer flexible pricing, including an annual subscription that allows for a lower price per project as well as the flexibility to begin or stop projects at any time.
