A virtual information room is a cloud-based system that allows users to securely exchange files and documents. These platforms come equipped with advanced features like streamlined user credentials, granular access control, custom-made permissions, activity tracking, and more.
These features allow companies to meet the security requirements of their projects while maintaining a seamless workflow and ensuring data privacy. VDRs are also able to integrate security protocols that are built on industry standards like GDPR. These protocols help ensure that users only see the information they need, thus avoiding data breaches and miscommunications that can delay deals and cost organizations millions.
Investment banks, private equity firms as well as other financial institutions use VDRs to manage large volumes of confidential documents during M&A deals. With the use of a VDR to share and dataroomconsulting.com/how-much-should-a-virtual-data-room-cost/ store files, these firms can conduct due diligence without the need to transfer documents between parties or risk losing sensitive information.
VDRs are also used extensively by life science companies, such as pharmaceuticals and biotechs. These companies need to communicate securely and in real time with partners in order to collaborate on clinical trials or R&D. They must also meet strict compliance requirements with regulatory standards including HIPAA and ISO. VDRs that have features like zoomable thumbnails, watermarking, as well as screen-scraping prevention allow life science companies to accomplish this while securing their most sensitive data.
Other significant uses for VDRs include capital raising, real estate transactions, and risk management for regulatory compliance. By connecting VDRs into their workflows they can work on projects in real-time and safely regardless of where they’re located.