Although standard file-sharing software is convenient for some business applications, cybercriminals can easily identify and crack into the files that are uploaded to these platforms or sent via email. Virtual data rooms are ideal for critical business applications, such as due diligence or legal contracts. They can also be used to manage documents and offer higher security.
All businesses, regardless of their size or industry need to work in partnership with multiple stakeholders, and protect confidential information. Using a VDR allows the leadership teams to meet these needs while safeguarding intellectual property and privacy. VDRs are used by many companies in the field of life science and technology but even small businesses with a single employee responsible for sensitive information should consider using an online collaboration platform that is secure.
VDRs have a myriad of additional features that can facilitate collaboration. They ensure that only the appropriate users have access the right documents. This includes multi-user editing, Q&A and granular permissions. Additionally, it provides detailed analytics that let managers know what is happening on the platform at any point. These features make VDRs a superior tool for collaboration than cloud-based storage solutions that often require you to contact customer support in order to get assistance.
While VDRs are typically used in M&A transactions they can be useful for any situation that requires sensitive data to be shared with outside parties. Venture capital and private equity companies, for instance could be involved in fundraising rounds that require sharing of sensitive data with potential investors as well as regulatory authorities. A VDR can facilitate these processes by streamlining file sharing and providing clear evidence of the paper trail.