What Are Virtual Data Rooms?

Virtual data rooms are designed for collaboration. They offer an integrated platform that allows teams as well as partners and clients to work and review documents live. They feature monitoring and auditing capabilities built in, which provide an exhaustive record of who accessed what and when. This information can be used to spot suspicious activities and ensure the compliance.

M&A – M&A transactions require a significant amount of documentation that has to be reviewed and shared by the sell-side as well as buy-side. VDRs are a great instrument to manage this process efficiently in a safe and efficient manner.

Banking — Investment bankers require secure access to privileged documents from their clients as well as third parties for M&A, capital raising and other projects. VDRs are a cost-effective solution that eliminates the need for in-person meetings as well as document storage as well as courier services and office supplies.

Construction & Service Contracts

Contractors need to communicate a huge amount of confidential documents with one other for the completion of projects and to maintain their business relationships. This requires a robust and reliable tool that enables contractors to access documents anywhere they have an internet connection. VDRs are a safe alternative to emailing and physical files. They can be access from any device or place.

Biotech/Pharma — R&D for life science companies requires high-level security and a platform for collaboration on confidential documents with partners, investors and other stakeholders. These companies can use VDRs to track progress, evaluate the interest of investors and monitor the manner in which documents are utilized by their users.