A virtual dataroom is a repository online that allows documents to be stored, distributed and tracked under the direction and discretion of the administrator. This makes it ideal to support complicated business processes and projects that require the disclosure of sensitive documents to third people outside of the firewall.
Online data rooms are most often utilized in M&A transactions to assist buyers with their extensive due diligence. All relevant documentation being in one place allows for faster and more efficient review, and aids in ensuring the confidentiality of.
Investment banks are among the top users of VDRs. They are utilized by both the buy-side as well as sell-side in financial transaction processes like mergers and acquisitions. They have to examine and access large amounts of sensitive documents, which require reliable storage and collaboration between multiple stakeholders in different locations and time zones.
Life science companies operate in highly-regulated environments, and have multiple shareholders and partners. They also have to share sensitive documents daily. For instance, they frequently need to prepare for an IPO or raise funds. VDRs provide a secure platform for sharing and collaboration, with detailed activity tracking to make it easy to see who has accessed what documents.
The top data room providers provide numerous features that streamline collaboration and management of documents that include a streamlined user experience, straightforward multi-project management, the capacity to assign specific permissions to different users, and a 24-hour dedicated support team. They also offer flexible pricing options, including some offering an annual subscription that provides a lower cost per project, as well as the ability to start and stop projects at will.