A virtual data room (VDR) is an online repository that stores and sharing business documents. These secure cloud-based storage solutions enable companies to share documents with internal and external entities and satisfy the requirements of compliance and regulatory requirements. They are often used for M&A due diligence, capital raising, strategic reviews, and tenders.
Companies in the life science and technology industries are among the heaviest users of VDRs, but all businesses have needs for document management. Administrators can configure granular permissions to control access to files in most data rooms. Users can also alter the appearance and function of their site by incorporating branding features, document labels and watermarking. Most importantly, they can work with a variety formats and offer full-text search and indexing features that help make it easier to locate important information.
If a company decides to use the VDR provider then it will have to migrate existing documents into the system. This is usually accomplished with the simple drag-and-drop method that doesn't require any complicated IT expertise. Users can also upload large amounts of data in a single click. Reordering functions allow users to easily rearrange files and folders after documents have been uploaded. Additionally, most data rooms allow users to track which documents are viewed and by whom.
VDRs offer a cost-effective alternative to physical document storage space and traditional methods of meeting. They eliminate the need for paper and can cut down on rental costs, courier services and travel expenses. They also help reduce time used in planning meetings and conducting due diligence by giving you immediate access to documents from any location.
