Cybercriminals can easily crack files sent by email or posted on these platforms. Virtual data rooms are perfect for business applications that require a lot of attention, such as due diligence or legal contracts. They can also be used to manage documents and offer more security.
Regardless of size or industry, all companies require security of confidential information and collaborate with many stakeholders. Using a VDR allows leadership teams to fulfill these requirements while protecting intellectual property and privacy. The most frequent users of VDRs include life science and technology companies, but even a small company with a single employee in charge of sensitive data should think about a secure online collaboration tool.
VDRs also have other features to facilitate collaboration. They ensure that the right users have access the correct documents. This includes Q&A, multi-user editing and granular permissions. It also offers detailed analytics to let leaders know what is happening on the platform at any point. These features make VDRs a more effective tool for collaboration than cloud-based storage solutions which typically require you to call customer support in order to receive assistance.
While VDRs are frequently used in M&A transactions but they can also be useful for any situation which requires sensitive information to be shared with external parties. For example venture capitalists and private equity firms may engage in various fundraising rounds that require a large amount of sensitive data sharing with potential investors and regulatory agencies. By streamlining file-sharing and offering clear paper trails, the VDR can speed up the process while keeping sensitive data protected.