Virtual Data Room (VDR) is a software that allows companies to share and manage data and documents with other stakeholders over the Internet. It is a powerful tool that supports numerous business processes such as capital raising, IPOs, M&A and strategic partnerships. The top VDRs provide granular permissions for access multi-factor authentication, time and IP restrictions, and a variety of formats for documents. They also have an application that can be used on mobile devices to work on projects while on the move and allow you to track user activity.
Investment bankers are among the most frequent users of VDRs because they aid in M&A due diligence processes as well as other financial transactions that require large quantities of data. A VDR not only provides security for the exchange of information, but it simplifies the process by eliminating travel and reducing costs for both parties.
Consultants are required to share a range of files with their clients, including confidential presentations and documents. This is often a challenge for large global firms with offices in different regions however VDRs allow them to collaborate on projects with teams across the globe without losing control over the files.
Startup founders can tailor their startup’s story to investors using the VDR. It could include sections on company organization documents, pitches decks as well as financial data (historical or future) as well as documentation about people and market information. The best VDRs offer a multilingual interface and a range of support options, such as an individual team for each client.