When a company needs outside parties to review its data, be it for due diligence or collaboration it can be difficult to share sensitive information without exposing the company to a breach or violating compliance. Virtual data rooms streamline and automate processes to aid companies in completing a variety of business events.

VDRs are most often employed for mergers and acquisitions, however any business can benefit from a simple system that consolidates files instead of sending them back and forth via email. Virtual data rooms can help you simplify the process of obtaining money from investors, or getting ready for an IPO. They also make it easier for people involved in the process to locate the information they require in a organized way.

A good VDR should also offer specific document permissions that limit access to specific folders or documents. Many providers provide comprehensive report and logging tools which track user activity including who viewed which documents and the time they were viewed. Furthermore, a powerful search feature and logical file folder structure makes it easy for users to navigate their way through the data and find what they’re looking to find quickly.

Another key feature is the capability to create customized document views for users in accordance with their role and responsibility. By giving specific viewing permissions it is possible to ensure that only relevant documents are seen and avoid miscommunication and loss of productivity. Many providers also offer a drag and drop interface that makes it great site easy to upload files.