A virtual information room is a cloud-based service that lets users securely share documents and files. These platforms are equipped with advanced features like simplified user credentials, more precise control of access, customizable permissions, and activity monitoring.
These features enable organizations to comply with the security requirements of their projects while maintaining an efficient workflow and ensuring data privacy. VDRs can also incorporate security protocols based on regulations in the industry, like GDPR. These safeguards ensure that users will only see the information they require. This helps prevent data breaches and miscommunications, which could delay deals or cost companies millions.
Private equity, investment banks, firms as well as other financial institutions use VDRs to manage large quantities of confidential documents during M&A deals. By using a VDR to share and store files, these firms can conduct due diligence without the need to transfer documents between parties or risk losing sensitive information.
VDRs are also used extensively by life science companies, including pharmaceuticals and biotechs. To collaborate with partners on clinical trials and R&D companies need to be able to communicate securely in real time. They also must meet strict regulatory compliances, such as HIPAA and ISO. VDRs with features such as zoomable thumbnails, watermarking, and the ability to prevent screenshots allow life sciences firms to do just that while safeguarding their most sensitive data.
Other significant uses for VDRs include capital raising, real estate transactions, and regulatory risk management. Through the integration of VDRs into their workflows these industries can collaborate on projects in a secure manner and in real-time, no matter where they may be located.
