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A virtual dataroom (VDR) can be described as an online storage space for documents and files which are shared among authorized teams or individuals. Its central, secure storage helps speed up due diligence processes and improves collaboration. It also helps to protect confidential information from unauthorized access, and ensures compliance with the requirements of regulatory agencies.

VDRs are used by many different industries for a variety reasons. Here are some of the most frequently used uses:

Acquisitions and mergers

During M&A transactions, a great deal of documents are shared for review and to make decisions. Virtual data rooms help streamline the process by streamlining tasks and securing sensitive information, improving communication and automating every aspect of the deal.

Life Sciences

A majority of R&D activities in life science firms involve creating and modifying proprietary information. This kind of information holds an immense significance to the business, and thus requires a significant degree of security. Virtual data rooms enable life science companies to share all the information they need with potential partners while maintaining a high level of security.

Real Estate

During the process of selling real estate, there is a large amount of documentation that needs to be exchanged between multiple parties. This is the situation where a VDR comes in handy because it makes it easy and secure document exchanges without the worry of leaks. It also allows everyone to collaborate on projects without the need to send lengthy emails that can cause confusion and delay negotiations. A VDR can also minimize the chance that costly mistakes will be made by keeping a record of all activities and changes.