A virtual data room (VDR) is a secure software platform that allows document sharing and collaboration for many business processes. VDRs are particularly useful for M&A due diligence, financing, legal proceedings and other projects that require the disclosure of privileged information to third parties outside the corporate firewall.
Certain traditional VDR providers ask users to download and run desktop software or plugins to ensure security. This can slow the review process, limit access to the VDR and even prevent potential customers or partners from taking part in any way. Modern VDRs provide an unrivaled user experience with native browser support. This makes them more robust and scalable, as well as intuitive.
In addition to offering a highly well-organized repository https://boardroomguru.blog/what-is-a-written-consent-agenda-in-a-board-meeting/ of files many VDRs provide search capabilities which can find text in the majority of file types, including PDF and Excel documents. This kind of tracking is particularly crucial for M&A due diligence and fundraising since it lets administrators assess the level of interest generated by bidders or investors.
Many VDRs allow user-level security and permissions at the folder level to ensure that only users with the need to access the document are able to do so. Private equity and venture capital companies use this feature to share reports with their portfolio companies, limited partner and investors to protect their confidential information and accelerate the review process. Also, pharmaceutical and biotech companies employ VDRs to share quickly their intellectual property and clinical trials results with research partners and regulators.