What Is a Virtual Data Room?
A virtual dataroom (VDR) is an online repository that allows you to upload and share confidential business documents. Its most common application is to facilitate due diligence in M&A transactions as well as debt or equity syndication and venture and private equity. But it can also be used to aid in investor communication marketing, as well as internal collaboration between executives.
A reliable VDR has advanced features that will aid in protecting the data of your business. It should, for example encryption of files in storage and in transit to stop unwanted leaks. It should let you set permissions at granular levels and then revoke access immediately, even after the files have been downloaded on devices. It should also have digital rights management tools like dynamic watermarks. These can prevent viewing by people who are not authorized.
Another important function of a VDR is its worldwide accessibility. Because it is hosted in the cloud, it can be accessed by anyone around the world without any firewalls or other restrictions. This helps businesses get more customers, and boosts the value of their company.
With the assumption that the average virtual data room user has a relatively inexperienced with technology so it is essential that the system is easy to use as is possible. The top VDR providers like iDeals, Citrix and Datasite have designed their interfaces to be compatible with due diligence and have made it simple to set up and navigate for all types of business users. They also provide comprehensive support services to help you with any problems that may arise during the VDR installation process.