Description

Many companies rely on generic file-sharing applications like Dropbox or Drive to share documents with partners. However, these tools aren’t designed to handle serious business processes that require the transmission of sensitive information. They’re often not equipped with features that help to manage sensitive files, like customizable permission settings and auditing capabilities. They also don’t give the professional first impression that’s required to close a deal or raise funds.

A virtual dataroom is a secure storage space for private documents, which are usually used in collaboration with partners or during business transactions. They are popular with due diligence in M&A and other corporate transactions in which parties must exchange a large amount of documents. All participants are able to review and comment on documents stored in a VDR at the same time. This makes the process easier and helps save money by removing the need to pay for travel or paper copies of documents.

In addition to the storage and organization of data virtual data rooms provide a variety of security features. Certain of these features were designed to prevent unauthorized entry, while others were intended to improve communication and efficiency. Administrators can determine who is able to see what information by go using an online dataroom with advanced permissions. They can also limit downloading, include a digital watermark and more.

Another key feature of a virtual data space is its ability to record information. Contrary to file-sharing services that are generic, which provide basic activity logs however, the VDR provides more precise activity tracking to provide a greater understanding of how a document is being used. This is helpful to monitor the amount of interest generated by sharing documents with potential buyers or investors, and help in the process of negotiating deals.