Virtual Data Room (VDR) is a software that allows companies to share and manage data and documents with other parties over the Internet. It is an effective tool that facilitates numerous business processes such as capital raising, IPOs, M&A and strategic partnerships. The best VDR providers provide the ability to grant access to users in granular ways including multi-factor authentication, time and IP restrictions, as well as various formats for documents and search functions. They also have an application that can be used on mobile devices to work on projects on the go and allow you to track user activity.
Investment bankers are among the most frequent users of VDRs as they aid in M&A due diligence procedures and other financial transactions that require large quantities of data. A VDR not only offers a secure environment to exchange data, but it simplifies the process by eliminating travel and reducing costs for both parties.
Consultancy firms have to share a variety of files with clients including confidential documents and presentations. VDRs are a great solution for large corporations that have offices across the globe. They can work on projects in collaboration with various teams without losing control.
Founders can make use of a VDR to personalize their startup’s story for investors. They can include sections about company organization documents including pitch decks and financial data (historical or projected) as well as documents relating to people and market information. The top VDRs provide a multilingual interface and a variety of support options, such as a dedicated team for each client.