Virtual data rooms (VDRs) are online repositories that allow sharing and storage of documents. Cloud-based secure storage solutions allow companies to share documents with internal and external entities and satisfy compliance and regulatory requirements. They are used for M&A, strategic review, capital raising and tenders.
Companies in the life science and technology sector are among the heaviest users of VDRs, but companies from all industries have needs for document management. Administrators can create granular permissions and restrict access to files in the majority of data rooms. Users can also modify the appearance and functionality of their site by incorporating branding options, document labels and watermarking. Most importantly, they allow a variety of file formats and provide full-text search and indexing features that help make it easier to locate important information.
After choosing the VDR the company must move its existing files to the new solution. This is usually accomplished with simple drag-and drop that doesn’t require any complicated IT expertise. Users can upload huge amounts of data in just a single click. Once the documents are imported, users can easily rearrange the order of folders and files with the reordering feature. Data rooms generally are able to track who has viewed what documents.
VDRs can be a cost-effective alternative to physical document storage spaces and traditional cybersecurity meeting methods. They eliminate the necessity for paper and cut out rental costs and courier services as well as travel expenses. They can also reduce the time spent in preparing meetings and performing due diligence by giving you immediate access to documents from any location.