A virtual data room (VDR) is an extremely secure software platform that facilitates collaboration and sharing of documents for various business processes. VDRs are particularly beneficial for M&A due diligence and financing, legal processes, and other crucial projects requiring the disclosure of sensitive information to third parties outside the firewall of the company.

Certain traditional VDR providers require users to download and install plugins or desktop software to access security features. This can slow down the review process, restrict access to the VDR and block potential buyers or partners from participating in any way. A modern VDR provides a seamless user experience with native browser support for an improved, flexible and intuitive solution.

Many VDRs offer a well-organized repository for files. They also offer search capabilities that can identify text within most types of documents, including PDFs and Excel documents. This granular https://contactboardroom.com/the-emerging-trend-of-digital-board-portals-within-the-nonprofit-sector/ activity tracking is especially important for M&A due diligence and fundraising since it helps administrators understand how much interest the documents are generating with bidders or investors.

Additionally, many VDRs offer folder level security and user permissions so that only those who are required to access a particular file can access it. Private equity and venture capital firms utilize this feature to share reports with their portfolio companies, limited partners and investors to protect their confidential information and accelerate the review process. Pharmaceutical and biotech companies use VDRs to speedily share intellectual property and results of clinical trials with research partners as well as regulatory agencies.