While standard file-sharing tools are ideal for certain business applications, cybercriminals can easily access and hack the files that are uploaded on these platforms or shared by email. Virtual data rooms are perfect for crucial business applications like due diligence or legal contracts. They can also be used to manage documents and offer more security.
Whatever the size or industry, all businesses need to protect confidential information and work with many stakeholders. Utilizing a VDR allows the leadership teams to meet these needs while protecting intellectual property and privacy. VDRs are used by a wide range of companies in the field of life science and technology, but even small firms with just one employee accountable for sensitive information should consider using a secure online collaboration platform.
VDRs have a myriad of other features to help collaborate. They make sure that the right people are able to access the appropriate documents. This includes multi-user editing, Q&A and granular permissions. Additionally, it provides detailed analysis to let the leaders know what is happening on the platform at any time. A lot of these features make a VDR an ideal tool for collaboration compared to cloud storage options that usually require a call to customer support for assistance.
VDRs are useful in any situation in which sensitive information must be shared. Venture capital and private equity companies, for instance are often involved in fundraising rounds that require the sharing of sensitive information with potential investors as well as regulatory agencies. A VDR can facilitate these processes by simplifying file sharing and presenting a an accurate paper trail.