What Are Virtual Data Rooms?

Virtual data rooms are designed to facilitate collaboration by providing a central platform which partners, teams and clients can review and work on documents in real-time. They also have built-in activity tracking and auditing capabilities that give a complete record of who used what, and when. This can assist in identifying suspicious activities and ensure the compliance with data protection laws.

M&A – M&A transactions require a substantial amount of documentation that has to be reviewed and shared by the sell-side as well as the buy-side. VDRs are an excellent tool to facilitate this process, efficiently and safely.

Banking — Investment bankers require secure access to documents from their clients as well as third parties for M&A capital raising as well as other projects. VDRs are a cost-effective option that eliminates the need for in-person meetings documents, document storage space courier services, as well as office supplies.

Construction & Service Contracts

Contractors have to share a large amount of confidential documents to complete projects and maintain business relationships. This requires a strong, reliable and secure tool that allows them to access documents from anywhere using an internet connection. VDRs offer a secure alternative to emailing and physical files. They can be accessed via any device or from any location.

Biotech/Pharma — R&D for life science companies requires top-of-the-line security and a platform for collaboration on confidential documents with investors, partners and other stakeholders. VDRs enable these firms to keep track of progress and analyse interest from investors, as well as keep smart data room solutions track of how documents are used by their users.