A virtual data room is a repository online for storing and disseminating documents that can be shared, organized and monitored all under the administrator’s control and discretion. This makes it ideal for supporting complicated projects and business processes which require the disclosure of confidential documents to third parties who are not inside the firewall.
The most common use case for online data rooms is in M&A transactions to ease the lengthy due diligence process that buyers generally undergo. The ability to store all relevant documents all in one place allows for faster and more efficient review, and ensures confidentiality is preserved.
Investment banks are among the most common users of VDRs that aid on both sides of the buy-side as well as the sell-side during financial transaction processes such as mergers and acquisitions. They need to review and access large numbers of sensitive documents, which require reliable storage and collaboration between multiple stakeholders in different time zones and locations.
Life science companies operate in highly regulated environments, with many shareholders and partners. They also need to share sensitive information every day. They are often required to raise money or prepare for an IPO. VDRs are a secure and safe environment for collaboration and sharing, with a detailed activity tracker to make it easy to track who has accessed what this post documents.
The top data room providers offer numerous features that make document management easier and facilitate collaborative work. They include a simplified user interface, simple multi-project management with the capability to modify permissions for each user, as well as a 24/7 support team. They also provide various pricing options, with many offering an annual subscription model that offers a lower price per project and the flexibility to start and pause projects at any time.