It can be difficult to share sensitive data with other parties, whether it’s for due diligence or collaboration, or to avoid a breach of compliance. Virtual data rooms simplify document sharing and streamline processes to help companies successfully complete a wide range of business events.
VDRs are mostly employed for mergers and acquisitions, however any company can benefit from a user-friendly system that consolidates files instead of sending them back and forth via email. Virtual data rooms can help simplify the process of obtaining funds from investors, or getting ready for an IPO. They make it easier for people involved in the process to locate the information they require in a efficient way.
A good VDR will also let you restrict access to specific documents or folders. Many providers provide extensive reporting and logging capabilities that monitor user activity that include who viewed which documents and when. A robust search function as well as a the logical structure of folders makes it easy for users to navigate the data.
Another key feature is the capability to create custom document views for each user depending on their role and the responsibilities they have. By giving specific viewing permissions you can ensure only relevant documents are seen to avoid miscommunications and lose productivity. Many providers also offer drag-and-drop functionality that makes it easy to upload and organize data.