A Virtual Data Room (VDR) is a protected online space that offers multiple stakeholders simultaneous access page to the same documents. They are extremely useful in due diligence projects, M&A, and other projects that require secure, fast and easy access to documents.
VDRs are commonly used to share and collaborate on contracts with partners and clients and for storing and making readily accessible documents that are vital to the continued operation of business partnerships. For instance, engineering firms often work together to build and produce buildings, or provide services and often exchange documents through a Virtual Data Room. These documents will be readily accessible to all contractors and partners.
Virtual data rooms are most frequently used as a tool for due diligence, however they can also be utilized in other ways, such as fundraising, restructuring, and sharing and storing documents. They are an incredibly efficient and reliable method to manage documents than traditional methods like email, or physical filing cabinets.
The main features of a good VDR include an encrypted messaging tool for internal collaboration among teams, the capability to monitor who has viewed and downloaded files, and the ability to auto-expire or delete files once they have been accessed so that sensitive information is protected. It is also important to look for a service that offers flexibility in their subscription plans to ensure that as requirements change they can be easily changed to suit.