It can be difficult to share sensitive data with third parties, whether for due diligence collaboration, for example, or to avoid the risk of a breach of compliance. Virtual data rooms simplify and automate processes to help companies complete many business-related events.
VDRs are most often used for mergers and acquisitions, but any company can benefit from a simple platform that centralizes files instead of sending them back and forth via email. Virtual data rooms can aid you improve the process of raising money from investors or preparing for an IPO. They also make it easier for people involved in the process to locate the data they require in an well-organized manner.
A good VDR should also allow documents with granular permissions, which limit access to specific folders or documents. Many providers offer extensive log-in and reporting features that monitor user activity, such as who viewed what documents and when they viewed them. A powerful search feature and the logical structure of folders make it easy for users to navigate through their information and find what they’re looking in a hurry.
Another key feature is the ability to create customized document views for users in accordance with their role and the responsibilities they have. By granting specific viewing rights, you can ensure that only the relevant documentation is accessible and prevents mistakes and loss of productivity. Many providers also offer an interface that allows drag and drop which makes it easy to upload files.