A virtual dataroom is an online repository that allows documents to be stored, distributed and tracked at the discretion and control of the administrator. This makes it perfect for supporting complex business processes and projects that require the disclosure of sensitive documents to third parties outside of the firewall.
Online data rooms are most often utilized in M&A transactions, in order to assist buyers to complete their due diligence. The fact that all relevant documentation is all in one place allows for faster and more efficient review and ensures security.
Investment banks are among the most frequent users of VDRs. They are used by both the buy-side as well as sell-side in financial transactions check my reference such as mergers and acquisitions. They are required to review and access a large number of sensitive documents, which require reliable storage and collaboration between multiple stakeholders across different locations and time zones.
Life science companies operate in highly-regulated environments, and have multiple partners and shareholders. They also need to share sensitive documentation on a regular basis. For instance, they frequently are required to prepare for an IPO or raise funds. VDRs offer a secure environment to collaborate and share information, with detailed activity tracking that makes it easy to determine who has accessed what documents.
The top data room providers offer many features to make document management easier and facilitate collaborative work. These include a simple user interface, a simple multi-project management with the capability to modify permissions for each user, and a 24-hour support team. They also offer flexible pricing options, including some offering an annual subscription plan that provides a lower cost per project, as well as the ability to start and pause projects at any time.
