A virtual data room is a repository online to store and distribute documents that can be shared, organized and monitored all under the administrator’s control and discretion. This makes it ideal for supporting complex business processes and projects that involve the disclosure of confidential information to third parties who are not inside the firewall.
Online data rooms are most frequently used in M&A transactions, to help buyers with their extensive due diligence. Having all relevant documentation all in one place allows for faster and more efficient review, and helps ensure confidentiality is preserved.
Investment banks are among the biggest users of VDRs. They can be utilized by both the buy-side as well as sell-side in financial transaction processes like mergers and acquisitions. They must examine and access large amounts of sensitive documents, which require reliable storage and collaboration between several stakeholders across various locations and time zones.
Life science companies operate in highly-regulated environments, with several shareholders and partners. They also have to share sensitive documents daily. They often have to raise money or prepare for an IPO. VDRs offer a secure and safe environment for collaboration and sharing, with a detailed activity log that makes it easy to track who has accessed what documents.
The best data room providers offer a range of features to streamline collaboration and management of documents, including a streamlined user experience, simple multi-project management, the capability to assign specific permissions to different users, and a 24/7 dedicated support team. They also provide different pricing options, with many of them offering an annual subscription plan that allows for a lower price per project, as well as the ability to start and pause projects at any time.
