When a company needs outside third parties to look over its data, whether for due diligence or collaboration it can be a challenge to share sensitive information without exposing the company to a breach or violating compliance. Virtual data rooms facilitate document sharing and streamline processes so that companies can effectively complete a variety of business activities.

Mergers and acquisitions are the most commonly used VDRs for startups, but businesses of all industries can benefit from a simple, user-friendly platform which centralizes documents instead emailing files back and forth. When you’re looking for ways to raise funds from investors or prepare for an IPO, a virtual data room can simplify the process and help stakeholders find the information they require in a logical manner that cuts down on communication chaos.

A good VDR can also permit you to restrict access to certain documents or folders. Many providers offer extensive log and reporting features that track user content actions such as who has viewed which documents and when. A robust search feature and the logical structure of folders helps users navigate through the information.

A key feature is the capability for users to create customized document views based on their roles or responsibilities. Providing specific viewing permissions ensures that only the required documentation is seen and helps prevent the loss of productivity due to miscommunication. Many providers also offer an interface that allows drag and drop which makes it easy to upload files.