A virtual data room (VDR) is a secure software platform that facilitates document sharing and collaboration for a variety of business processes. VDRs can be extremely useful for M&A due diligence as well as financing, legal https://boardroomguru.blog/what-is-a-written-consent-agenda-in-a-board-meeting/ proceedings, and other critical projects that require disclosure of private information to parties outside the firewall of the company.

Certain traditional VDR providers ask users to download and run desktop software or plugins for security purposes. This could slow down the process of reviewing and limit access to VDR. It can also hinder prospective buyers from registering. A modern VDR provides a more seamless user experience and native browser support, resulting in an improved user-friendly, flexible and intuitive solution.

In addition to offering an well-organized repository of files many VDRs provide search capabilities that can detect text in all file types, including PDF and Excel documents. This granular activity tracking is especially important for M&A due diligence and fundraising as it aids administrators in understanding how much interest their shared documents are generating from bidders or investors.

Additionally, many VDRs provide folder level security and user permissions so that only those who require to see a particular document can access it. This feature is commonly used by private equity and venture capital companies to share reports with limited partners, portfolio companies and investors to ensure confidentiality and speed up the review process. Also, pharmaceutical and biotech companies utilize VDRs to share quickly their intellectual property and clinical trials with research partners and regulators.