It isn’t always easy to share sensitive data with other parties, whether for due diligence or collaboration, or to prevent an infringement of compliance. Virtual data rooms automate and streamline processes to help companies complete different business events.

Mergers and acquisitions are among the most frequent use of VDRs for startups, but businesses of all industries can benefit from a user-friendly, simple platform that consolidates documents instead of emailing files back and forth. Virtual data rooms can help you streamline the process of raising funds from investors, or preparing for an IPO. They make it easier for those involved to find the documents they require in an organized way.

A reliable VDR should also provide specific document permissions that limit access to certain folders or documents. Many providers offer extensive log and reporting features which track user activity, including who viewed what documents and when. A powerful search function and the logical structure of folders allows users to navigate the information.

Another important characteristic is the ability to create custom document views for each user according to their roles and responsibility. By granting specific viewing privileges, you can ensure that only relevant documents are seen and avoid miscommunications and loss of productivity. Additionally, many providers offer a drag-and-drop interface that makes it easy to upload and organize data.

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