What Are the Uses of a Virtual Information Room?
A virtual information room is a cloud-based platform that allows users to securely transfer documents and files. These platforms are stocked with sophisticated features like streamlined user credentials, granular control of access, customizing permissions and activity tracking.
These features allow organizations to meet their security requirements for projects, while maintaining a seamless workflow, and guaranteeing data security. VDRs can also be incorporated with security protocols that are based on regulations in the industry, like GDPR. These safeguards ensure that users only view the information they require. This helps prevent data breaches and misunderstandings, which can delay deals or cost companies millions of dollars.
Private equity firms, investment banks firms, and other financial institutions employ VDRs to manage large volumes of confidential documents during M&A deals. These companies can perform due diligence using the VDR to share and store files. They don’t have to be concerned about losing sensitive data or transfer documents to third parties.
VDRs are also widely used by life science companies, including biotechs and pharmaceuticals. These businesses need to be able communicate in real-time and secure manner with partners to collaborate on clinical trials or R&D. They also must meet strict regulations such as HIPAA and ISO. VDRs with features like zoomable thumbnails, watermarking and screen-scraping prevention allow life science companies to achieve this while safeguarding their most sensitive data.
Other significant applications for VDRs include capital raising real estate transactions and regulatory risk management. By integrating VDRs in their workflow they can collaborate on projects in a secure manner and in real-time, no matter where they are located.