A virtual data room offers easy access to sensitive documents through a secure agent app or websites. It is typically employed in M&A transactions as well as due diligence, asset management, IPOs and joint venture investments but it also provides leverage for all kinds of collaboration between business stakeholders.
For example life science companies need to communicate with investors and share information about everything from the results of clinical trials and HIPAA compliance to licensing intellectual property and storing patient records. This kind of sharing requires a lot of transparency. The VDR ensures that every document is readily available to the right people and that it is identified when it’s being used or edited.
There’s also the legal industry, where mountains of paperwork can hinder the process of a smooth communication between clients and attorneys. That’s why so many law firms rely on virtual data rooms to make it easier to organize and track important documents.
Other industries utilize VDRs in the same manner they do, whether to conduct research and development, or collaborate with contractors during construction of a building, or for the delivery of a service. Each of these scenarios requires the transmission and storage of massive amounts of data. That’s why a well-designed data space provides all the tools needed to accomplish so seamlessly and securely. This includes audit trails and versioning, which can demonstrate who made changes to the document and at what time. This can be very helpful in proving that certain comments or edits were authored by a particular person which is commonplace in certain professional settings.