A virtual dataroom is a repository online that allows documents to be stored, distributed and tracked under the direction and discretion of the administrator. This is a great way to support complicated projects and business processes that require disclosure of confidential documents to third parties outside of the firewall.
Online data rooms are most often utilized in M&A transactions, to help buyers with their thorough due diligence. The ability to store all relevant documents all in one place allows for faster and more efficient review and ensures that confidentiality is maintained.
Investment banks are among the top users of VDRs. They are used by both the buy-side as well as sell-side in financial transaction processes like mergers and acquisitions. They are required to review and access large numbers of sensitive documents, which requires secure storage and collaboration between several stakeholders across various time zones and locations.
Life science companies operate in highly-regulated environments with multiple partners and investors and are required to share a variety of sensitive documents regularly. For instance, they typically need to prepare for an IPO or raise funds. VDRs are a secure and safe environment for collaboration and sharing with detailed activity tracking for users to see who has accessed what documents.
Top data room providers offer many features to simplify collaboration and document management, including a streamlined user experience, simple multi-project management, the capacity to assign specific permissions to different users, and a 24 hour dedicated support team. They also offer flexible pricing options, including many of them offering an annual subscription plan that offers a lower price per project, as well as the ability to start and stop projects at will.
