Data rooms are used most often in M&A deals to share information about business with potential buyers. However, they can also be accessed by lawyers for meetings with clients, investors for funding rounds, and other business dealings. These commercial transactions require a substantial amount of sensitive information to be shared in a safe and efficient manner.
The best virtual data room providers offer an easy and intuitive user interface which makes them easy to use by users of all technical backgrounds. A majority of these data room providers let users view documents in their native format, without any plugins or Java requirements, and provide a scroll-view feature for navigating large amounts of files. They also provide advanced security features like remote data control privacy folders, privacy control, and access based on roles. Some providers even offer secure chat, Q&A, and video conference features to allow real-time collaboration between team members and clients.
A data room can be established in a matter of minutes, saving time and money when compared to other methods. This is particularly true for venture capital firms which need to review all documents related to an organization prior to closing an investment. Legal teams can easily and quickly share sensitive documents with clients and investors by using the VDR. This helps to speed up the timeline of deals and also ensures strict confidentiality and privacy rules.