www.dataroomdc.com/what-is-an-online-data-room-and-why-would-you-need-one/
A virtual data room is a software that facilitates sharing documents in any scenario that requires professional and secure file distribution and management. VDRs are mostly used in mergers and acquisitions. However, they can also be useful in strategic partnerships, raising funds, IPOs, and legal procedures.
In the past, it was common for people involved in due diligence or legal processes to travel to a physical location and then spend hours going through stacks of papers. A virtual data room removes this hassle and offers an easier user experience for all parties. With the help from an advanced search engine, you can locate a document with just a few clicks.
Another key role of a virtual data room is its capacity to facilitate complex collaboration and communication in negotiations. A major pharmaceutical company, for example, used the virtual dataroom to conclude a complex merger between an industry giant and a top pharmaceutical firm. Because of the streamlined process for communication and enhanced security of data provided by the platform, both companies were able to finalize their transaction with minimal work.
Virtual data rooms can also provide more precise analytics, which are transaction-focused and more comprehensive than cloud storage applications. VDRs are, for instance can allow administrators to define granular permissions, and track the user’s activity on a more precise scale, including who viewed which document and how long. Cloud storage apps provide basic statistics like usage statistics and the current access. VDRs can also permit administrators to restrict the number of times that a user can login, the length of time that he or she is allowed to view the platform, and even restrict access to the platform based on IP address.