When a company requires outside third parties to look over its data, whether for due diligence or collaboration, it can be challenging to share sensitive information without risking breach or violating compliancy. Virtual data rooms streamline document sharing and automate processes so that companies can successfully complete a wide range of business functions.
Mergers and acquisitions are the most common use of VDRs for startups, but companies of all kinds can benefit from a simple, user-friendly platform that consolidates documents rather than sending documents back and forth. If you’re looking to raise money from investors or prepare for an IPO, a virtual data room can help streamline the process and help all stakeholders find the information they require in a way which reduces confusion in communication.
A good VDR should also have specific document permissions that limit access to specific folders or documents. Many providers provide extensive log-in and reporting features that track user activities, such as who viewed what documents and when. A strong search feature and an organized file folder structure makes it easy for users to navigate their way through the information and find the information they’re looking for quickly.
One of the most important features is the capability for users to create customized document views based on their role or responsibility. By granting specific viewing rights, you can ensure that only the necessary documentation is accessible and prevents miscommunication and lost productivity. Many providers also provide the drag-and-drop interface that makes it easy to upload data.