A VDR (also called an electronic data room) is an online secure repository that enables efficient document sharing. It is an essential tool for businesses undergoing any type of deal, from a merger or acquisition to raising capital or an public offering.
To make the most of an VDR system, companies must focus on features that make it easy to use and understand. A learning curve should be expected with any software however a simple interface and intuitive features help speed up due diligence. A VDR should also provide support for a variety of types of devices, including mobile phones and tablets. Support options include chat within the app, multilingual phone and email customer service, as well as helpful knowledge base.
When selecting a VDR it is crucial to think about the type of files that will be stored. The most frequent use case is M&A which demands extensive documentation and monitoring. Private equity and venture capital firms often review multiple deals at one time which means a lot of paperwork that require the organization of. A VDR streamlines file-sharing for these parties, speeding up diligence and delivering clear paper trails.
Other typical VDR applications include IPOs and intellectual property management. Companies in the field of technology may have to disclose proprietary code and other confidential information to investors and investors, and a virtual information room can provide an easier way to review the information. To accomplish this, a VDR will help ensure that only authorised parties are allowed to view the information.