INTRODUCTION

Technological developments have increased the capabilities of VDRs and made them powerful online platforms. A VDR is an online space that acts as a repository for a company’s documentation. It allows multiple users to share and collaborate critical information through a secure and encrypted web connection, from anywhere in the world. It enhances companies’ due diligence processes, reduces physical paperwork, overheads, clutter and wastes.

The first advantage a VDR has is that easily available on-demand. You can use it for whatever you want, whenever you want and from wherever you are. It allows easy and efficient storing and sharing of documents between multiple individuals or parties. The benefits of a VDR are suitable for a range of industries and situations. Therefore, they are more in use in the financial sector, particularly asset management companies, banks, joint ventures, mergers and acquisitions, fund raising, consultancy, manufacturing. These companies choose VDRs because they are reliable, secure, easily accessible and scalable.

In fact, VDR is a solution for any business that wants to streamline its document sharing and make it more efficient. VDR are most useful for sharing and storing critical business information, document management and secure data management, can upload high amount of data, accessible by mobile also, precise searching functionality.

VDRs are considered more secure because they provide clients with controls, reporting and procedures to keep their data and operations safe. They take a more comprehensive, multi-faceted approach to secure online files. There are several complex layers that work together to create all-encompassing barriers against potential risks and threats. Some of the security features include:

Physical Security: continuous data back up with over 99.9% uptime.

Application Security: encryption methods, digital watermarking, data siloing in private cloud servers, multi-factor authentication, accident redemption. Infrastructure Security: 256-bit AES data encryption, storing data on remote data centres. Auditing and Compliance: activity logs for any action in a data room.

One of the best advantages of a VDR is that it can be customized as per your requirements. Data rooms are compiled of folder and file structures that are then filled with files or documents, so you can set up different files or folders like accounts, HR, Income Tax etc.

You can also control the level of access for each individual. Moreover, even data room providers don’t have access to your data, the source documents and files, so they are also the same as other people outside the data room.

VDRs power and accelerate your deal making with their automated setup of intelligent customized dashboard, easy file management, bulk uploads, document-based workflows, real-time insights, integrated AI redaction, zoom integration, 24×7 support and more.

A combination of all these factors and improved functions have resulted in the evolution of Virtual Data Rooms.