Virtual data rooms (VDRs), make it easier to share important documents securely with other parties. Companies across many industries, including life sciences and tech are using them to conduct due diligence in addition to other business events like M&A capital raisings, audits and strategic reviews.
A VDR offers a variety of advantages over physical storage since the data can be accessed from anywhere via an internet connection. They are also immune to physical causes of damage like floods or fires and are able to be kept safely for as long as the company wants them to be.
A VDR is typically used to facilitate M&A processes, where large quantities of sensitive documents have to be reviewed by prospective buyers. During M&A diligence it is the VDR allows companies to provide confidential documents, like financial documents, business plans and more, without having to worry about their security. Permissions can be modified quickly, and comprehensive user activity logs can provide invaluable insights into the preferences of each buyer.
A virtual data space must have multiple layers of protection, including physical security and cloud security to ensure the security of data that is stored online. A reliable VDR will regularly back up its servers to avoid data loss due to technical problems. It should also implement encryption techniques including digital watermarking and other security features to prevent hackers from accessing files. It should also be easy for teams to migrate files from different platforms to the VDR, and for compliance departments to maintain access rights, or even revoke the access rights when users quit the company.