When a company needs outside third parties to look over its data, for reasons of due diligence or collaboration, it can be challenging to share sensitive data without risking a breach or violating compliance. Virtual data rooms streamline the sharing of documents and automate processes so companies can successfully complete a wide range of business functions.
Mergers and acquisitions are among the most commonly used VDRs for startups, but businesses in any industry can benefit from a simple, user-friendly platform that consolidates documents rather than sending documents back and back and forth. Whether you’re looking to raise funds from investors or prepare for an IPO, a virtual data room can simplify the process and help all stakeholders find the information they require in a way which reduces communications chaos.
A reliable VDR should also allow documents with granular permissions, which limit access to specific folders or documents. Many providers offer extensive log-in and reporting features that track user activity, including who viewed which documents and when they viewed them. Additionally, a robust search feature and logical file folder structure help users to navigate their way through the information and find what they’re looking for quickly.
One of the most important features is the ability to create custom document views based upon their role or duties. By granting specific viewing permissions, you can ensure that only relevant documents are seen to avoid miscommunications and lose productivity. Many providers also offer a drag and drop interface which makes it easy to upload data.
