A virtual dataroom (VDR) is an online repository that allows for secure document storage and collaboration between several parties. It is used as a tool in business transactions requiring secure document management and storage, such as M&As and fund raising, and due diligence.
VDRs have a wide range of options that differentiate them from other file sharing services or dataroom providers physical data rooms. For instance, some of the established VDR partners offer security certifications (like ISO 27001 and SOC 1/2/3) watermarking options, customizable NDAs, at-a-glance reporting and other tools that enable high-level analysis and visualization of data.
Another major distinction is that the contents of VDRs are customizable. VDR can be tailored for specific groups. For example life science startups could contain documents targeted at potential investors, which provide information about their advancements (e.g. Clinical trial results and HIPAA conformity can be included while maintaining the highest standards of data privacy. intellectual property and licensing agreements).
VDRs are useful for real estate transactions because they can be used to present a variety of documents, including titles to land or investment records, as well as finance management documentation. They can be used to provide a detailed, transparent picture of the company’s previous and future plans — a powerful tool to close a deal. Utilizing VDRs VDR in the right way can reduce the amount of paper work involved and boost the effectiveness of the M&A process. It’s a good idea to create a plan of the VDR before you begin. This helps to ensure the logical organization of the folders and documents and facilitates an easy navigation.