When a business requires outside third parties to look over its data, whether for due diligence or collaboration it can be a challenge to share sensitive information without exposing the company to a breach or in violation of compliance. Virtual data rooms streamline document sharing and automate processes so that companies can effectively complete a variety of business-related events.
Mergers and acquisitions are the most frequent use of VDRs for startups, however businesses of all industries can benefit from a simple, user-friendly platform that centralizes documents instead of sending files back and back. When you’re looking for ways to raise funds from investors or prepare for an IPO, a virtual data room can make the process easier and assist stakeholders in finding the information they need in an organized way that minimizes communications chaos.
A good VDR should also allow specific document permissions that limit access to certain documents or folders. Many providers offer comprehensive logging and reporting features which track user activity such as who viewed what documents and when they viewed them. A robust search feature and an organized folder structure allows users to navigate through the information.
A key feature is the ability for users to create customized document views based on their role or duties. Achieving specific viewing permissions will ensure that only the necessary documentation is viewed and helps to prevent mistakes and loss of productivity. Many providers also provide an interface that allows drag and drop that makes it simple to upload data.