A virtual dataroom (VDR) software platform allows sharing confidential documents via the internet. Its purpose is to improve collaboration between stakeholders by making sensitive files readily available from anywhere connected to the internet. VDRs are typically used in M&A transactions. However, their flexibility makes them a good choice for any company that requires a secure way to share information.
When businesses form partnerships to produce goods, build structures, or provide services, they often share a range of documents that need to be secured. A VDR can aid these organizations to streamline their due diligence processes and effectively collaborate on projects.
M&A transactions are notoriously long and it is crucial that all parties can access the correct information at the appropriate time to meet their deadlines. A VDR allows all stakeholders to examine documents on one platform without the need for expensive paper storage, in person meetings or courier services.
VDRs are a great solution for investment banking processes like capital raising, M&A, and IPOs. The most advanced VDR providers, like DFIN’s Venue, are also capable of leveraging artificial intelligence to automatize workflows and speed up review of contracts. This helps reduce workloads, eliminates duplicate requests and allows employees to concentrate on tasks that require human input. In addition, the latest VDRs provide document permissions with granularity that allow administrators to decide what each user can see and print from each folder and file within a data room.
