VDR providers are businesses that provide a virtual information room software platform to allow clients to share sensitive information with multiple parties in a secure environment. The platform permits huge volumes of data and tracking to be uploaded, and also setting up specific permissions for users per document. This assures that confidential information will only be accessible to those who are required to see it.
The majority of the modern VDR providers offer a very modern and intuitive user experience, with powerful collaboration tools. They usually have robust reporting and analytics features like document downloads and views, vector watermarking in real-time as well as classification labels as well as malware detection, and more. The best providers have strict security standards and certifications such as FedRAMP, FINRA, HIPAA and GDPR.
One of the most frequent instances that a VDR is utilized is in merger and acquisitions (M&A). Investors, law firms and accounting firms share sensitive information about a business with other participants in a virtual data room so that they can effectively evaluate the deal. A VDR can make a lengthy and complicated process simpler. Another scenario is when a company is involved in litigation and must keep documents to be reviewed at a later date. A VDR can help reduce the cost of searching through faxes, emails and other files to locate relevant information. The VDR is a great tool to keep all documents related to the case. Legal counsel can access the VDR anytime.