It can be difficult to share sensitive information with third parties, whether it’s for due diligence or collaboration, or even to prevent any breach of compliance. Virtual data rooms make it easier to streamline the sharing of documents and automate processes so that companies can effectively complete a variety of business-related events.
VDRs are typically used in mergers and acquisitions. However, any company can benefit from a simple platform that centralizes files instead of sending them back and forth via email. When you’re looking for ways to raise funds from investors or prepare for an IPO, a virtual data room can make the process easier and help the stakeholders locate the information they need in an organized way that reduces communications chaos.
A reliable VDR will allow you to limit access to certain documents or folders. Many providers provide extensive log and reporting features which track user activity and activities, such as who viewed what documents and when. A powerful search feature and logical file folder structure help users to navigate the data and find the information they’re looking for quickly.
Another key feature is the capability to design custom document views for users depending on their role and duties. By granting specific viewing rights it is possible to ensure that only the necessary documents are reviewed and avoid miscommunications and loss of productivity. Many providers also offer a drag and drop interface that makes it easy to upload files.