What Is a Virtual Data Room?
A virtual dataroom (VDR) provides a secure platform for sharing documents with multiple users simultaneously. If your business is involved in M&A or due diligence litigation, or any other project, VDRs are a secure method to share documents with other parties as well as internal teams.
Due diligence in M&A is the most commonly used application of the VDR. Merging with or buying another company requires sharing of large amounts of financial documents that are sensitive and intellectual property. VDRs aid in the process by providing a collaborative space and detailed activity tracking and an audit log.
VDRs can also be used to analyse the interest in documents that are shared which can be useful during fundraising or M&A. This information can be used to assist businesses customize their pitch decks and negotiate with potential investors and partners. For instance, for life science firms, VDRs can provide granular information about how long prospective buyers spent looking over specific company documents to gauge how much they are engaged and the types of information that are most valuable to them.
The best VDR requires various important factors such as feature sets cost, security and ease of use. Many VDR providers offer free trials to users to test the product before uploading data.
Digify’s completely customizable interface and advanced branding options allow you to match your VDR experience to your brand’s identity. This includes custom login pages, email layouts, and white-labeled hyperlinks. We also let you include a configurable About page and to specify the labeling of documents.
