If businesses decide to use a virtual data room (VDR) to share confidential documents online with other parties, they’re typically focused on the solution’s price range, security capabilities and usability, which can be evaluated with a no-cost trial offered by the majority of providers. While these factors are important however, many don’t consider that a VDR’s true value lies in its specialized capabilities that facilitate sharing of confidential data for critical processes.
VDRs can be particularly useful for professionals who need to share sensitive documents, like documents pertaining to legal clients, with investors, service providers or other third-party organisations. Whether the document in question is financial and HR information, legal documents for clients, proprietary intellectual property or a business plan, the right configuration of a VDR will ensure that the documents are only accessible to those with appropriate permissions.
Mergers and acquisitions (M&A) procedures require the exchange of large volumes of documents that have to be viewed with security by a variety of parties. A VDR’s granular permission settings and simple-to-use folder structures make it the ideal repository for these due diligence procedures.
Biotech and pharma companies often utilize VDRs to share confidential formulas, molecules and patents with other labs, regulators, investors and potential partners in the research and development process, or in preparation for fundraising and licensing activities. A VDR that is specifically designed for this purpose is the most suitable solution since such information is extremely confidential and requires strict data security standards.
It’s the same for commercial real estate projects where buyers and investors need to review large format blueprints, financial statements, and more. A VDR will allow them to do this without the limitations of email or other file-sharing platforms, which typically require lengthy downloads or uploads and are incapable of handling many users at once.