VDR providers provide an online platform for virtual datarooms that allows clients to share confidential information in a safe environment. The platform allows huge volumes of documents to be uploaded and tracked while granting specific user permissions for each document, which ensures that data confidential will only be visible to the people who should have access to it.
Most of the more modern VDR providers provide a modern and user-friendly experience with robust collaboration tools. They also often provide robust reporting and analytics features like documents, downloads, edits, real-time vector watermarking, labels for classification, malware detection and more. The top providers adhere to strict security standards and certifications including FedRAMP, FINRA, HIPAA and GDPR.
A VDR is usually used for mergers and acquisitions. Law offices, investors and accounting firms share sensitive information with other parties in order to enable them to evaluate a deal. A VDR can make a lengthy and complex process more efficient. A company might also be required to retain documents in the event of a lawsuit and review them afterward. A VDR can cut down on the expense of going through emails, faxes, and other files to find relevant information. The VDR can be utilized to store all documents that is related to the lawsuit. It can be accessed by legal counsel at any point.