A virtual dataroom (VDR) allows companies to secure store and share documents on the cloud. Most VDRs come with strong encryption technologies and access control, forming digital fortresses to guard sensitive information from being accessed by unauthorized persons. VDRs can streamline processes, speed deals and improve effective communication.
VDRs are typically used in mergers and acquisitions where parties exchange large amounts of documents during due diligence prior to making a big deal. VDRs can aid in making the process of M&A much quicker and efficient by removing the requirement to deliver physical documents or travel to meetings.
VDRs are also beneficial for strategic partnerships, in which parties collaborate to develop new products or expand an existing business. If partners require access to a company’s data it can be a challenge to do so without divulging sensitive information, and possibly triggering a compliancy violation.
If it’s for due-diligence, M&A, or internal collaboration, the most important factor when choosing a VDR is security. Modern VDRs offer cybersecurity multi-factor authentication, advanced encrypted both in transit and at rest, as in addition to audit logs and other security features to lower risk. They also offer features like watermarking disabled printing and blind viewing to guard the privacy of. This ensures that only authorized users are able to access the document and demonstrates an commitment to data integrity. The most reliable VDRs also provide user and file activity analytics that can be accessed by administrators for accountability.