5 Use Cases for Secure Virtual Data Room

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Virtual data rooms allow for improved collaboration and secure document sharing in a controlled space. They are used in a wide variety of industries to organize a variety documents, including

nancial records, business plans and customer data. They provide advanced document management as well as enhanced security and compliance with business partners and stakeholders. Although cloud storage platforms such as Dropbox and Google Drive can offer file-sharing and collaboration capabilities, they do not provide the specific functionality and security requirements for sharing of data for business.

M&A due diligence

M&A due diligence is a frequent use scenario for VDRs. It is a common use case for VDR because it often involves the supplying and reviewing of large volumes of documents which could contain proprietary or confidential information. A VDR can ease the burden and time needed to complete M&A due diligence, enabling parties to view the information at any time with an Internet connection. The documents can also be wiped out should the deal fail to close.

Law firms

A secure virtual data room can be a valuable tool for attorneys to share their files with partners, clients and regulatory organizations. Virtual data rooms permit attorneys to collaborate and work on legal cases from anywhere with an Internet connection improving workflows and productivity.

Real estate industry

When a company is looking to purchase or sell real estate, it may have to share documents with a number of interested parties. This includes potential buyers, investors, and regulators. A VDR can be used to organize and share documents and speed the process. It also helps to prevent sensitive information from being lost.

Fundraising

Whether it is for new investments or expansion into new markets, startups and enterprises may need to raise funds. A VDR is the ideal solution, since it offers transparency and a well-organized system for documentation. Furthermore, a VDR can help to reduce the risk of fraud by providing detailed audit reports.

It is recommended to choose a VDR that has a custom branding. This allows you to personalize your login page and email templates. You should also be able install preferred integrations. In addition, consider the way the VDR is secured by using features such as two-factor authentication, password protection, granular permission settings and remote wipe of mobile apps. You should also ensure whether the VDR has compliance certifications that include SOC 1 & SOC 2, ISO 27001 and HIPAA. Lastly, make sure your preferred VDR supports redaction, which allows you to black out areas of the document to ensure personally-identifiable information remains private. This is a must-have feature for M&A deals and similar transactions.