A virtual data space provides easy access to documents that are sensitive via a secure agent software or a website. It is commonly used for M&A transactions and asset management. Due diligence, IPOs, and joint venture investments are also common uses.
For instance life science firms have to communicate with investors and share information on everything from clinical trial results and HIPAA compliance to licensing intellectual property and storing patient data. This kind of data sharing requires lots of transparency. The VDR makes sure that every document is accessible to the right people, and that it can be tracked when it’s being viewed or edited.
Then there’s the legal industry where huge piles of paperwork can hinder the process of efficient communication between clients and attorneys. Many law firms use virtual data rooms in order to track and organize important documents.
Other industries also use VDRs in the same manner they do, whether to conduct research and development or work with contractors during the construction of a structure or the delivery of a service. All of these scenarios require the sending and storage of huge amounts of data. A well-designed dataroom can provide all of the tools needed to accomplish this efficiently and securely. That includes built-in versioning and audit trails, which demonstrate what changes to a document occurred and who made them. This is very useful when you need to verify who made certain edits or changes, which is often the case in professional settings.