When a company requires outside parties to review its data, be it for due diligence or collaboration it can be difficult to share sensitive information without risking breach or committing a violation of compliancy. Virtual data rooms automate and streamline processes to help companies complete a variety of business events.

Mergers and acquisitions are the most frequent use of VDRs for startups, however businesses in any industry can benefit from a user-friendly and simple platform that consolidates documents rather than emailing files back and back. When you’re looking for ways to raise money from investors or prepare for an IPO or IPO, a virtual data room can streamline the process and help stakeholders find the information they require in an organized way that cuts down on confusion in communication.

A reliable VDR should also have specific document permissions that limit access to specific folders or documents. Many providers provide extensive log and reporting features that track user activities and activities, such as who viewed what documents and when. In addition, a strong search feature and logical file folder structure make it easy for users to navigate through their data and find the information they’re looking for quickly.

A key feature is the ability for users visit the website to create custom document views based upon their role or duties. By granting specific viewing rights it is possible to ensure that only the relevant documents are viewed to avoid miscommunications and lose productivity. Many providers also provide an interface for drag and drop that makes it simple to upload files.