Virtual Data Room is a software application that lets organizations share and manage documents and other information with other stakeholders on the Internet. It is an effective tool that can be used to support many business processes like capital raising, IPOs, M&A and strategic partnerships. The top VDRs provide the ability to grant access to users with granularity to multi-factor authentication, time and IP restrictions as well as a variety formats for documents. They also offer mobile applications to work on projects while on the move and allow you to monitor user activity.
Investment bankers are the most frequent users of VDRs because they facilitate M&A due diligence processes as well as other financial transactions which require large amounts of data. A VDR not only offers an encrypted environment for exchange of data, but helps to streamline the process by eliminating travel and cutting costs for both parties.
Consultancy firms need to share a range of client files, including confidential documents and presentations. This can be a problem for large global firms with offices in multiple regions However, VDRs aid them in working on projects with teams across the globe without losing control of the files.
Entrepreneurs can customize their startup's story for investors with the VDR. They can include sections about the company's organizational documents, pitches decks and financial data (historical or future) as well as documentation about people and market information. The best VDRs include an interface that is multilingual as well as a variety of support options, and a dedicated team for each client.