A virtual information room is a cloud-based system that allows users to securely share documents and files. These platforms come with advanced features like streamlined user credentialing, more granular access control, custom-made permissions, activity tracking and more.
These features enable organizations to comply with their security requirements for their projects while maintaining an efficient workflow, as well as ensuring data confidentiality. VDRs can also integrate security protocols built on industry standards such as GDPR. These functions help ensure that users only get what they need, and prevent mistakes and data breaches which can delay transactions and cost organizations millions.
Private equity, investment banks, firms, and other financial institutions utilize VDRs for managing large volumes of confidential documents during M&A deals. They can carry out due diligence using a VDR to share and store files. They don’t have to be concerned about losing sensitive information or transfer documents to other parties.
VDRs are also utilized extensively by life science firms, including biotechs and pharmaceuticals. These companies need to communicate in real-time and securely with partners to collaborate on clinical trials or R&D. They also must meet strict regulatory requirements, such as HIPAA or ISO. VDRs with features like zoomable thumbnails as well as screenshot prevention as well as screen-scraping and watermarking allow life science companies to protect their most sensitive information.
VDRs are also utilized for capital raising, real estate transactions, and regulatory risks management. By integrating VDRs in their workflow, these industries can collaborate on projects safely and in real-time, no matter the location of their operations.