A virtual data space provides an easy access to sensitive documents via a secure agent application or websites. It’s most commonly used in M&A transactions, asset management, due diligence, IPOs and joint venture investments but it also provides leverage for any type of collaboration among business stakeholders.
For instance life science companies have to communicate with investors and share information about everything from clinical trial results and HIPAA compliance to licensing intellectual property and keeping patient files. This type of data sharing requires transparency, so a VDR makes sure that each document is easily accessible to the appropriate people. It also records the time when the document has been read or modified.
Then there’s the law industry, where mountains of paperwork can get in the way of efficient communication between clients and attorneys. Many law firms use virtual data rooms to manage and organize important documents.
Other industries utilize VDRs in the same way for conducting research and development or to collaborate with contractors in the construction of a building or delivery of a service. Each of these scenarios requires the storage and transmission of massive amounts of data, which is the reason a well-designed data room will provide all the tools needed to accomplish it seamlessly and securely. This includes audit trails and versioning, which can reveal who changed the document and at what time. This can be extremely helpful when you want dataroom360.com to verify who made certain edits or comments that are often the case in professional settings.