For many industries, the use of virtual data rooms is a key component in projects that require secure document storage as well as management and sharing. This is particularly true in M&A transactions where sensitive data needs to be transmitted in a secure manner and viewed as part of due diligence. A VDR designed for this purpose can be more efficient and economical than physically transferring confidential documents between parties.
Virtual data rooms are also much more intuitive and user comfortable than messaging or emails. The top providers provide an user-friendly interface that requires no training to get running. Administrators are also able to control the rights of a document, such as whether it is printed or downloaded, or read. They can also monitor activity to see who spends the most time on each page. This allows them to assess the level of interest. Top-tier VDRs also incorporate eSignature tools like DocuSign that allow users to sign contracts and documents directly from within the platform.
Many other industries rely on virtual data rooms to facilitate their due diligence procedures, such as banking and capital markets (for loan syndication as well as venture capital and private equity deals) as well as life sciences companies (for everything from clinical trials to HIPAA compliance) and engineering firms (for project-based collaboration). Virtual data rooms are a great tool for businesses of all sizes. They are more productive, regardless of their industry, because they can keep and access data in one location instead of having them scattered across multiple devices and locations.
