A virtual data room is a repository online for storing and sharing documents that can be organized, shared and tracked at the administrator’s discretion. This makes it ideal to support complicated business processes and projects that require the disclosure of sensitive documents to third parties outside of the firewall.\n<\/p>\n
Online data rooms are most frequently used in M&A transactions, in order to assist buyers in their due diligence. The fact that all relevant documentation is all in one place allows for faster and more efficient review and ensures the confidentiality of the documents.\n<\/p>\n
Investment banks are among the top users of VDRs. They can be utilized by both the buy-side as well as sell-side in financial transaction processes such as mergers and acquisitions. They must examine and access large amounts of sensitive documents, which require secure storage and collaboration between various stakeholders across different time zones and locations.\n<\/p>\n
Life science companies operate in highly controlled environments, with multiple investors and partners and are required to share a variety of sensitive documents on a regular basis. They often have to raise funds or prepare for an IPO. VDRs provide a secure platform to share and collaborate, with detailed activity tracking that makes it easy to track who has accessed which documents.\n<\/p>\n
Top data room providers provide various features that simplify document management and collaboration. These include a streamlined user interface, simple multi-project management with the capability to modify permissions for each user, and a 24-hour support team. They also offer different pricing options, with many offering an annual subscription model that offers a lower price per project, as well as the ability to stop and restart projects at will.\n<\/p>\n