A virtual data room (VDR) is a secure cloud-based repository that facilitates online document sharing and collaboration for business transactions. These transactions are complex and require careful management of documents and storage to assure transparency for regulators or potential investors. A VDR is an essential device for companies going through an IPO. It can speed up the process and act as a central hub to collect and organize documents.
A good VDR solution should incorporate various levels of security protocols, including a robust permissions matrix, two-factor authenticaiton encryption technology, document watermarking tools for users, audit logs and more. A VDR should allow administrators to track who has visited the document and when. This is crucial for due diligence teams in order to detect security risks that could be present.
The top VDRs offer users with the option to design custom dashboards and templates for reports so that they can customize their experience while viewing and access the most important data points at a glance. This helps companies streamline their workflow and save time. Drag-and drop functionality should be readily available to enable users to upload large volumes of data as well as single files simultaneously using the VDR.
The best VDRs include a backup server so that they will continue to operate even if their primary servers go down. This is a vital feature to be looking for because it will stop any downtime during a deal.