If companies are working with sensitive documents, like intellectual property, accounting records and financial reports, it is vital to ensure that these sensitive documents do not fall into the hands of individuals who are not authorized to access them. To help businesses protect their data, many choose to use secure virtual deal rooms (VDRs).
VDRs offer a secure environment to share information safely. They make use of encryption, advanced access permissions, and dynamic watermarking in order to prevent unauthorized entry. They also monitor user actions and provide an audit trails of files’ downloads and view. This allows companies to track who is viewing data and when.
Often the immovable property industry requires sharing large quantities of documents with a variety of parties. Security is extremely important, as the company’s IP is vital to its success. A VDR offers a high degree of protection and is therefore commonly employed in litigation.
The manufacturing industry is defined by billion-dollar contracts as well as projects that require efficient management and security for documents shared. A VDR provides a convenient and efficient solution to this problem.
VDRs are used for many purposes, such as M&As, due diligence and fundraising rounds. Startups make use of VDRs during fundraising rounds to share private documents like business plans, forecasts and cap tables with potential investors. This is more efficient than emailing documents and allows for a smoother and quicker due diligence.