A virtual information room (VDR) is a secure cloud-based platform for exchanging documents and files. These platforms are armed with advanced features such as simplified user credentials, granular control of access, customizable permissions, and activity monitoring.
These features allow companies to comply with their security requirements for projects while maintaining the same workflow and ensuring data confidentiality. VDRs also have the ability to incorporate security protocols built on industry standards like GDPR. These features ensure that users only get what they require, thereby preventing data breaches and miscommunications that could delay deals and cost organizations millions.
Private equity, investment banks, firms, and other financial institutions employ VDRs for managing large volumes of confidential documents during M&A deals. With the use of the VDR to share and save files, these businesses can conduct due diligence without the need to transfer documents between parties or risk losing sensitive information.
VDRs are also used extensively by life science companies, like pharmaceuticals and biotechs. These companies must be able to communicate in real-time and secure manner with partners to collaborate on clinical trials or R&D. They also need to meet strict regulatory compliances such as HIPAA and ISO. VDRs that include features such as zoomable thumbnails, and screenshot prevention and watermarking and screenshot prevention can allow life sciences companies to safeguard their most sensitive data.
Other potential uses for VDRs include capital raising real estate transactions and risk management for regulatory compliance. Through the integration of VDRs in their workflow these industries are able to collaborate on projects with security and in real-time, no matter the location of their operations.