A virtual dataroom (VDR) is an online repository of documents used in business that only individuals with the appropriate permissions can access. This kind of digital platform is utilized for procedures that require confidential documents to be shared, like due diligence for mergers and acquisitions (M&A) or venture capital financing. Legal firms also make use of VDRs to share files with clients and other interested parties during legal procedures like litigation, bankruptcy or fundraising.
The greatest advantage of vdr services is the enhanced security features that include watermarking and two-factor authentication, as well being granular permissions which allow users to decide who can access specific folders or files. A range of sophisticated tools, like auto-redaction as well as privacy assessments for data, are offered with VDRs to help mitigate the risk of sensitive information exposure.
A second benefit is that they can reduce the time required for M&A deals and other business transactions by allowing parties to access information faster. VDRs also come with collaboration features that improve productivity in the data-room process, including annotations to files sections for Q&A, as well as the ability to assign tasks.
Many VDR providers also provide top customer service, which includes in-app chat and phone, as well as email and multilingual support. They might even have help centers with product videos. This is a significant benefit when compared with regular cloud storage solutions, which do not usually put a lot of emphasis on this particular area. This is particularly relevant for M&A projects where stakes are very high and the pressure to close deals fast is great.