It isn’t always easy to share sensitive data with other parties, whether to facilitate due diligence or collaboration, or even to prevent the risk of a breach of compliance. Virtual data rooms simplify document sharing and streamline processes to help companies successfully complete a variety of business activities.
Mergers and acquisitions are among the most frequently used VDRs for startups, but companies of all kinds can benefit from a simple, user-friendly platform that consolidates documents rather than emailing documents back and forth. Virtual data rooms can help streamline the process of raising money from investors, or planning for an IPO. They also make it easier for people involved in the process to locate the information they require in an systematic way.
A reliable VDR should also allow documents with granular permissions, which limit access to specific documents or folders. Many providers provide extensive reporting and logging capabilities that monitor user activity and activities, such as who viewed what documents and when. A powerful search feature and an organized structure for files help users to navigate through their data and find what they’re looking in a hurry.
Another key feature is the ability to create custom document views for each user based on their role and responsibility. Providing specific viewing permissions ensures that only relevant information is viewed and helps to prevent the loss of productivity due to miscommunication. Many providers also offer the drag-and-drop interface that makes it easy economic sanctions to upload data.