A VDR (also known as an electronic data room) is a secure online repository that enables efficient document sharing. It is an essential instrument for companies that are involved in any type of deal, including mergers or acquisitions to raising capital or a public offering.
To maximize the benefits of a VDR the company should prioritise features that make the system features of the virtual data room easy to use and understand. A learning curve is to be expected with all software however, a user-friendly interface and intuitive functions speed up due diligence. A VDR should also offer support across a range of types of devices, including tablets and mobile phones. Consider support options such as live chat in-app or phone or email support that is multilingual and useful knowledge bases.
It is crucial to take into account the type of files that you’ll be keeping when selecting a VDR. The most popular use case is M&A in which the process requires extensive documentation and viewing. Private equity and venture firms often analyze several deals at the same time and are able to bring reams upon reams documents that need organization. A VDR simplifies the file sharing process for these stakeholders. It helps speed up diligence and provides clear paper trails.
Other common VDR uses include IPOs and intellectual property management. Virtual data rooms are used by tech companies to provide investors with confidential information and proprietary code. For these reasons, a VDR can assist in ensuring that only qualified parties are able to access the data.