It isn’t always easy to share sensitive information with outside individuals, whether to facilitate due diligence, collaboration, or to prevent a breach of compliance. Virtual data rooms simplify and smart data room solutions automate processes to assist companies in completing many business-related events.

Mergers and acquisitions are among the most frequently used VDRs for startups, however companies of all kinds can benefit from a user-friendly, simple platform that centralizes documents instead of emailing documents back and forth. Virtual data rooms can assist you to make it easier to raise money from investors or preparing for an IPO. They can also help people involved in the process to locate the information they require in an well-organized way.

A reliable VDR will also permit you to restrict access to certain documents or folders. Many providers offer comprehensive logging and reporting features which track user activity including who read what documents and when. A robust search feature and the logical structure of folders makes it easy for users to navigate through the information.

One of the most important features is the capability for users to create custom document views based upon their role or responsibility. By granting specific viewing permissions you can ensure that only the necessary documents are reviewed to avoid miscommunications and lose productivity. Many providers also provide a drag and drop interface which makes it easy to upload files.