A virtual dataroom (VDR) is an online repository that enables secure document storage and collaboration between several parties. It is a leverage tool in business transactions that require secure storage and management, like M&A or fund raising, as well as due diligence.
VDRs offer a range of features that separate them from other file-sharing services, including physical data rooms. Certain well-established VDR partners, like have security certifications, such as ISO 27001, SOC 1/2/3, watermarking, customizable NDAs and at-a glance reporting.
Another significant difference is that the content of a VDR can be customized for specific audiences. For instance companies in the life sciences can include documents that explain their progress to potential investors (e.g. clinical trial results and HIPAA compliance) while ensuring the highest standards of data privacy (e.g. Intellectual licensing and intellectual property agreements.
VDRs are useful in real estate transactions, as they can be used to present different documents, such as titles to land investments records, land titles, and documents for finance management. They can be used to present an extensive, clear overview of the company’s history as well as future plans — a powerful tool when it comes to closing a deal. Making the right use of VDRs VDR can cut down on the amount of physical paperwork and improve the efficiency of the M&A process. For instance it’s recommended to sketch out a plan of the VDR structure prior to starting work. This ensures the systematic organization of documents and folders and allows for the easy navigation.
