When businesses decide to employ https://vdrblog.com/who-uses-vdrs/ a virtual data room (VDR) to share private documents online with third parties, they’re typically focused on the product’s price point, security implementations and usability, which can be tested using a free trial offered by the majority of providers. While these aspects are important, many fail to consider the fact that the true value of a VDR is in its unique capabilities to facilitate the sharing of confidential data for critical processes.
VDRs are especially useful for professionals who have to share sensitive documents with service providers, investors and third-party organisations. A VDR properly configured can guarantee that documents like HR and financial documents, client legal documents or proprietary intellectual property business plans, or other proprietary intellectual property are only accessible to people with the appropriate permissions.
Mergers and Acquisitions (M&As) procedures require large volumes of documentation to be exchanged, and must be reviewed securely by multiple parties. A VDR’s granular permission settings and simple folder structure make it an ideal repository for due diligence processes.
Biotech and pharmaceutical companies typically utilize VDRs to share confidential formulations, molecules, and patents with other labs, regulators, investors, and potential partners in the research and development process or in preparation for licensing and fundraising activities. A VDR that is specifically designed for this purpose is the most suitable solution because such information is extremely confidential and requires strict data protection standards.
The same is true for commercial real estate projects, where there are a variety of buyers as well as investors will need to review large-format plans, financial reports, and more. A VDR lets them do this without the limitations of email or file-sharing systems that are generic that typically require lengthy downloads or uploads, and are unable to handle multiple users at one time.