A virtual data room (VDR) is an online repository that stores and sharing business documentation. Cloud-based solutions enable businesses to share documents internally as well as externally, and to satisfy regulatory and compliance requirements. They are often used for M&A due diligence, capital raising, strategic reviews, and tenders.
VDRs are utilized by companies in the life and technology science industries, but document management is a need for all kinds of businesses. Most data rooms permit administrators to define granular permission settings and control access to files. Users can also alter the appearance and functionality of their website by using branding features, labelling of documents and watermarking. They can support a variety of file formats, and they offer full-text searching and indexing options that help you find important information faster.
When choosing the VDR the company will have to transfer its existing documents to the new solution. This is usually accomplished through a simple drag and drop process, that doesn’t require any complicated IT expertise. Users can also upload large amounts of data in just one click. Reordering features allow users to easily rearrange folders and files after documents have been uploaded. Additionally, the majority of data rooms can be used to monitor the number of documents that are viewed and by whom.
VDRs can be a cost-effective alternative to physical storage spaces for documents and traditional meeting methods. They eliminate the necessity for paper and cut out rental costs, courier services and travel expenses. They can also save time in preparing meetings and conducting due diligence because they allow instant access to documents.