Most providers offer a trial evaluation of the usability and security of the virtual dataroom (VDR) before deciding whether to utilize it to share confidential data with external parties. While these aspects are important but many don’t realize that a VDR’s true value is in its capabilities that allow sharing of confidential documents for mission-critical processes.
VDRs are especially useful for professionals who need to share sensitive documents with service providers, investors and third-party companies. Whether the document in question is HR and financial information, legal documents for clients such as proprietary intellectual property or a business plan the right configuration of a VDR can ensure that documents are only accessible to those who have the proper permissions.
Mergers and acquisitions (M&A) procedures require the exchange of large numbers of documents that need to be viewed with security by a variety of parties. The VDR’s powerful permission settings and simple folder structure make it the ideal repository for due diligence processes.
Pharma and biotech companies typically utilize VDRs to share confidential formulations, patents and molecules with other labs, regulators, investors and potential partners in the research and development process, or in preparation for licensing and fundraising activities. Because this information is highly sensitive and requires strict data security standards and regulations, a specially-designed VDR is the best choice for this type of collaboration.
The same applies to commercial real estate projects, in which numerous buyers and investors will need to review large-format blueprints, financial reports and more. A VDR will allow them to do so without the limitations of email or file-sharing websites, which usually require lengthy downloads or uploads and are incapable of handling many users at once.