A virtual data room is a device which facilitates document sharing in any situation that requires secure and professional document distribution and management. VDRs are most commonly used for mergers and acquisitions, but they can also be beneficial in strategic partnerships, raising money, IPOs, and legal proceedings.

In the past, it was typical for those involved in due diligence or legal processes to travel to an actual location and spend hours scanning through a plethora of documents. A virtual data room takes away the hassle and provides an easy-to-use experience for all parties. With the help of advanced search engine, you can locate a document with just a few clicks.

A virtual data room could also play an important https://dataroomdc.com/what-is-an-online-data-room-and-why-would-you-need-one/ role in supporting complex collaboration and communication in the context of negotiation. For example, a leading pharmaceutical company recently used a virtual data room to conclude a complex merger with an industry giant. With the help of streamlined communication and enhanced security of data provided by the platform, both companies were able conclude their merger with minimal changes.

Virtual data rooms can also provide more comprehensive analytics, that are focused on transactions, than cloud storage apps. For instance although cloud storage apps offer basic access statistics like usage statistics and current access, VDRs allow admins to give more granular access rights to specific documents or folders and also to monitor users’ activity on an extremely fine level, including who views which document and how long. In addition, VDRs can be set up to restrict the number of times users sign in to the platform, as well as the time that they are able to access the platform, or even limit access via IP address.