A virtual data room is an online repository for storing and distributing documents that can be organized, shared and monitored all within the administrator’s control and discretion. This makes it ideal to support complex business processes and projects that require disclosure of sensitive documents to third parties outside of the firewall.

The most popular use for online data rooms is in M&A transactions to aid in the lengthy due diligence process that buyers typically undergo. All relevant documents being in one place allows for quicker and more efficient review and helps to ensure confidentiality.

Investment banks are among the most frequent users of VDRs. They can be used by both the buy-side as well as sell-side in financial transactions such as mergers and acquisitions. They need to examine and access large quantities of sensitive documents, which require an efficient storage system and collaboration among several stakeholders across various time zones and locations.

Life science companies work in highly-regulated environments with multiple investors and partners, and have to disclose a lot of sensitive documentation on a regular basis. They typically have to raise funds or prepare for an IPO. VDRs offer a secure environment to share and collaborate, with detailed activity tracking that allows you to determine who has accessed what documents.

Top data room providers offer a range of features to simplify document management and collaboration, including a streamlined user experience, simple multi-project management, the ability to customize permissions for different users, and a 24/7 dedicated support water resourse conservation tips team. They also provide various pricing options, with the majority of them offering an annual subscription plan that provides a lower cost per project, as well as the ability to start and stop projects at any time.