A virtual data room is a safe online repository of documents that is used to exchange confidential information between companies. It allows for secure collaboration in a secured environment, and gives access to documents anytime, from any location through a browser for the web or tablet apps. Its multi-faceted security solution protects online files by utilizing data encryption encryption methods that include dynamic watermarking, granular permission settings, and the capability to track all file activity in a live session. Some VDR providers also provide additional services to improve data handling, such as redaction (blacking out certain parts of a document) as well as fence view (shows only a small portion of a document and prevents screenshots) multi-factor authentication as well as real-time data backup.
There are many reasons companies might require a secure virtual data room among the most frequent uses for a VDR include mergers and acquisitions, capital raises due diligence strategic reviews, audits and tenders. VDRs offer a high degree of security and are cost-effective, as they eliminate the requirement for a physical space to be rented, a team to keep an eye on it all day, and travel costs to allow potential buyers to examine documents.
It is crucial to understand that not all VDRs are alike and that the cost-to-feature ratio can differ greatly between different vendors. It is advised to choose one that provides a free trial and a variety of paid plans so that you can check out the software, compare features and choose which is best for your company.