A virtual data room is a repository online for storing and distributing documents that can be organized, shared and monitored all within the administrator’s control and discretion. This is a great way to support complicated projects and business processes which require the disclosure of confidential documentation to third parties outside of the firewall.

The most frequent use for online data rooms is for M&A transactions to ease the extensive due diligence process that buyers typically water resourse conservation take on. having all relevant documentation all in one place allows for faster and more efficient review and helps ensure security.

Investment banks are the most common users of VDRs that aid on both sides of the buy-side as well as the sell-side during financial transaction processes such as mergers and acquisitions. They need to review and access a large number of sensitive documents, which requires secure storage and collaboration between multiple stakeholders in different locations and time zones.

Life science companies operate in highly controlled environments, and have multiple partners and shareholders. They also have to share sensitive documents daily. For instance, they frequently are required to prepare for an IPO or raise funds. VDRs offer a secure environment to share and collaborate with a detailed activity log that allows you to monitor who has accessed which documents.

Top data room providers offer numerous features that make document management easier and facilitate collaborative work. They offer a more efficient user interface, simple multi-project management with the capability to modify permissions for each user, and a 24/7 support team. They also offer flexible pricing options, with some offering an annual subscription that provides a lower cost per project, as well as the ability to start and pause projects at any time.