If a company requires external third parties to look over its data, be it for due diligence or collaboration it can be a challenge to share sensitive information without exposing the company to a breach or violating compliancy. Virtual data rooms automate and streamline processes to aid companies in completing many business-related events.

Mergers and acquisitions are among the most frequent use of VDRs for startups, however companies of all kinds can benefit from a simple, user-friendly platform which centralizes documents instead sending files back and back and forth. Virtual data rooms can help make it easier to raise funds from investors, or planning for an IPO. They also make it easier for those involved to find the data they require in an organized way.

A good VDR will also allow you to restrict access to specific documents or folders. Many providers offer comprehensive reporting and logging capabilities which track user activity, including who viewed what documents and when. A robust search function as well as a an organized folder structure allows users to navigate through the data.

A key feature my review here is the capability for users to design custom document views based upon their role or responsibility. By granting specific viewing privileges it is possible to ensure that only relevant documents are seen and avoid miscommunication and loss of productivity. Many providers also provide an interface for drag and drop that makes it easy to upload data.