What is Virtual Data Room Software (VDR)?
Virtual data room (VDR) software is an online repository which facilitates the safe sharing of files. Users can upload information and access it 24/7, whether they are at home or at work. This means that there is no need to send sensitive data via email which can lead internal leaks. The top VDRs come with advanced security features, like watermarks and restricted viewing modes. Documents can also expire.
The most popular use-case for virtual data rooms is M&A activity, particularly in the tech industry, where companies often rely on acquisition as their primary exit strategy or significant milestone. In these cases, it is essential that deal participants review huge amounts of data within short time frames. This is especially the case when the companies involved have offices across the world and are in different time zones. Virtual deal rooms provide an online platform for accountants, lawyers, and other external regulators can look over documents of the company in an easy, secure and efficient manner.
Other industries that typically rely on virtual data rooms include banking, biotech and energy. The primary reason is that the underlying business processes in these sectors are highly confidential and require a higher level of security and efficient collaboration. The top VDRs offer reliable solutions to these processes. They provide features for compliance and litigation and also diligence. They also offer user interfaces and templates that are customized to meet the requirements of this type of project.