A virtual data room is a digital repository for storing and distributing documents that can be shared, organized and tracked at the administrator’s discretion. This is a great way to support complicated projects and business processes that require disclosure of confidential official website documents to third parties outside the firewall.

Online data rooms are most often utilized in M&A transactions, to help buyers with their thorough due diligence. Having all relevant documentation in one place enables faster and more efficient review and ensures that confidentiality is maintained.

Investment banks are the most common users of VDRs which aid both sides during financial transaction processes like mergers and acquisitions. They typically need access to and examine large quantities of sensitive documents, which require an efficient storage system and a simple collaboration among multiple stakeholders across different locations and time zones.

Life science companies operate in highly-regulated environments with multiple partners and investors, and have to provide a large amount of sensitive documentation regularly. For instance, they typically need to prepare for an IPO or raise funds. VDRs are a safe place to share and collaborate with detailed activity tracking that allows you to monitor who has accessed which documents.

Top data room providers provide numerous features that make document management easier and facilitate collaboration. These include a simple user interface, simple multi-project management with the ability to set permissions that are specific to each user, as well as a 24/7 support team. They also provide flexible pricing options, including many offering an annual subscription plan which offers a lower cost per project, as well as the ability to start and pause projects at will.