Virtual data rooms (VDRs) allow companies to share their important documents with investors, customers, and corporate leaders via the internet in a secure environment. VDRs can eliminate physical paper and associated costs like printing and storage, while providing better due diligence supervision and efficiency.
Mergers and Acquisitions
In M&A transactions, there may be huge amounts of documents to handle, each requiring careful review. VDRs can assist in the efficiency of due diligence as they permit both parties to collaborate online and cut down on meeting costs. In addition, the best online data room providers offer advanced features such as document indexing and redaction (blacking out areas of files so that personally-identifiable information remains private).
Fundraising
Venture capitalists and BD partners often require a list of written diligence questions for you to complete, which can result in dozens of distinct documents. By sharing these questions and answer sets in a VDR with viewer permissions based on investor/partner team members, you will be able to avoid unnecessary disclosure and make the process much simpler for everyone involved.
Strategic Partnerships
Similar to M&A, during strategic partnerships you’ll likely have to share a considerable amount of data with third parties. This can be done with the use of a VDR, which allows you to organize your documents and make them accessible to those who want to have access to them. A great VDR can also allow you to modify your own terms of access which all users must agree to before they can access your data.
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