A virtual dataroom is a repository online which allows companies to securely share confidential information. It allows for secure collaboration in a transparently protected environment. It also gives access to documents at any time, from anywhere using a browser on the internet or tablet application. Its multi-faceted security system secures online documents with encryption methods, dynamic tagging, granular permissions settings and the ability to monitor all file activity during a live session. Certain VDR providers also offer additional services that can improve the data handling, such as redaction (blacking out specific parts of a document) as well as fence view (shows only a small part of a document and prevents screenshots) multi-factor authentication and real-time data backup.
There are many reasons a company might need the services of a virtual data space. However some of the most popular applications include mergers and acquisitions, capital raises due diligence, audits and strategic reviews. VDRs provide a high level of security, and are cost-effective because they eliminate the need for a physical space to be rented, a staff to monitor it 24 hours a day, and travel expenses to allow prospective buyers to examine documents.
It is crucial to realize that not all VDRs are the same and that the cost-to-feature ratio varies greatly between vendors. It is recommended to select a VDR that offers the opportunity to try a trial version for free as well as various paid plans, which allows you to try the software and compare features prior to deciding which plan is right for your company.