Virtual Data Room is a secure cloud storage service that allows businesses to share their documents with third party securely. It is used by a variety of industries which include life science, technology banking, M&A and more.
Virtual data rooms are most often used for M&A transactions, which is the most frequent application of VDRs. They facilitate due diligence, and conclude deals with less risk. This is vital, considering that M&A could involve large quantities of documents, and be extremely sensitive.
A VDR can reduce M&A risk by offering the users with more specific permissions who have secure spreadsheet viewers as well as other features, such as screen-only mode, screenshot blocking and more. This means that only the right individuals are able to access and view the data. Security for the infrastructure is also assured by multiple backups including virus scanning, data center redundancy, and more.
Financial service companies have a lot of data to manage from business contracts to other legal documents to accounting and financial reports. This makes them a perfect candidate for a VDR, as they can safely store documents and share them with third party quickly.
Investment banks use online document sharing tools to facilitate M&A transactions as well as capital raising. These companies require a VDR with a flexible pricing plan and collaboration capabilities to maximize efficiency. For example an investment bank may require a solution that has an upload speed of 5MB per second, SmartLock that allows revoking access to documents after downloading, built-in redaction, DocuSign integration, and more.