In a virtual data room, confidential documents is exchanged during due diligence and strategic transactions. The customized platform allows the process to be efficient and easy, removing any concerns regarding the safety of circulation of sensitive data. As opposed to free file sharing tools dedicated virtual rooms provide custom permission settings, advanced auditory capabilities and watermarking. They can also be utilized to conduct forensic security analysis of a shared document to assess its potential for leaks.

When a company is considering an M&A deal or asset sale the company will probably need to share sensitive information with a variety of parties. The ideal way to do this is through an online repository that is secure and allows remote access for authorized users, such as external advisors and shareholders. VDRs can be used to share all kinds of documents including spreadsheets, images to spreadsheets and CAD files to presentations. They have predefined folder templates for due-diligence checklists, and drag-and drop upload capabilities that simplify the organization complex folder structures. Advanced VDRs can also offer automatic index numbering, dynamic watermarking and several other features to enhance document security.

A VDR can be used in a myriad of scenarios such as selling an asset to arranging strategic partnerships with other companies. Due diligence is essential for businesses and startups who are seeking to raise money. They’ll have to disclose large amounts of data to draw investors. A VDR can speed up the entire fundraising process and streamline disclosure by allowing a company to securely exchange information with potential investors, auditors, and lawyers.