A virtual data room is a secure cloud platform that lets users browse documents and share them with others. It is utilized by businesses that require the exchange of sensitive information in a secure manner. It’s also a great alternative for organizations that want to collaborate with customers, partners, and investors. The process of due diligence, IPOs, capital raising, and M&A are some of the activities that typically require large amounts of document sharing.

In the past there was a requirement to physically meet in a room to go over important documents, however this process has been replaced with VDRs. These platforms are much more convenient and can be used from any device that has an internet connection. The first step in selecting the most suitable VDR for your company is to determine your objectives. It is recommended to examine the reviews presented on a vendor’s website, and also third-party reviews on sites like www.gb-ware.com/web-filtering-content-filtering Trustpilot and Software Advice.

Life sciences firms often need to share R&D documents with various parties. This includes investors, partners and regulators. Data rooms can increase efficiency by providing access controls that are more specific. It can also show you what documents are being viewed and how many times.

Real estate deals typically involve an abundance of documents. A VDR can help streamline M&A by allowing you to provide 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.