A virtual data room is a secure cloud-based platform that lets users browse documents and share them with others. It is utilized by businesses who require sharing sensitive information in an organized way. It is a good choice for companies who want to collaborate with their clients or investors. Due diligence, IPOs and capital raising are just a few of the tasks that require a lot of document sharing.

VDRs have replaced the requirement for people to meet physically to discuss important documents. These platforms are a lot more convenient, and they can be accessed from any device with an internet connection. Identifying your check this business goals is the first step to choosing the right VDR. It is also advisable to look over third-party reviews on sites like Trustpilot and Software Advice.

Often, life science companies have to share R&D documents with a variety of people. This includes investors, partners, and regulators. Data rooms can help to make the process more efficient by providing access control that is granular. It also allows you to discover what documents people are viewing and how many times they’ve viewed them.

Real estate transactions typically involve an abundance of documents. A VDR can simplify M&A by allowing you securely to communicate confidential financial documents to the due diligence team of a prospective buyer. With features like redaction and “fence view” (which blacks out part of a file so that personally-identifiable information remains private), it is easy to protect documents in a data room.