A VDR (also called an electronic data room) is a secure online repository that facilitates document sharing. It is a vital tool for any business going through an acquisition, merger, a merger, acquisition or raising capital.
To reap the maximum benefit from a VDR system, businesses must focus on features that make it easy to use and understand. While there is a learning curve with any new software however, a user-friendly interface with simple features can speed up due diligence and collaboration. A VDR should also provide support across a wide range of devices, including tablets and mobile phones. You should look for support options such as live chat within the app, phone and email support that is multilingual and useful knowledge bases.
It is essential to take into consideration the type of files that you’ll be storing when selecting the VDR. The most frequent use is M&A. This process requires extensive documentation, and the ability to view it. Private equity and venture firms often analyze several deals at the same time and are able to bring many reams of documents that need organization. A VDR simplifies the file sharing process for these parties. It accelerates diligence and offers clear paper trail.
Other typical VDR uses include IPOs, and intellectual property management. Virtual data rooms are used by tech companies to provide investors with confidential information and proprietary code. A VDR can be used to ensure that only the authorized parties have access to the information.