Virtual data rooms (VDRs) are online storage solutions to store and share documents. Cloud-based secure storage solutions enable companies to share documents with both internal and external parties, and to meet the requirements of compliance and regulatory requirements. They are typically employed for M&A due diligence, capital raising, strategic reviews, and tenders.
Companies in the life science and technology industry are among the largest users of VDRs, but businesses of all kinds have needs for document management. Administrators can establish granular permissions and manage access to files in many data rooms. Users can also modify the appearance and function of their site by incorporating branding features, labelling of documents and watermarking. They also allow a variety of file formats and offer full-text search and indexing capabilities that can allow users to find important information.
If a company decides to use to sign up with a VDR provider, it will need to migrate existing documents into the software. This is typically accomplished through simple drag-and drop that doesn’t require any complicated IT expertise. Users can upload huge amounts of information with only one click. Once the files have been uploaded, users can easily rearrange the order of the folders and files with the reordering feature. Most data rooms also are able to track who viewed which files.
VDRs are a cost-effective alternative to traditional methods of meeting and physical document storage. They eliminate the need for paper and can reduce the cost of renting and courier services as well as travel expenses. They can also reduce time used in planning meetings and conducting due diligence, by providing instant access to documents from any location.