When companies work with sensitive documents, like intellectual property, accounting records and financial reports, it is vital to ensure that these sensitive files do not get into the hands of unauthorized individuals. Many companies utilize secure virtual dealrooms (VDRs) to protect their data.
VDRs provide a secure environment to share information securely. They utilize encryption, advanced access permissions, and dynamic watermarking to block unauthorized access. Additionally, they monitor user activity and provide detailed audit trails for file views and downloads. This lets companies to track who is viewed data and when.
Often the immovable property industry requires sharing large amounts of documents with a variety of parties. Security is a must as the company’s IP is vital to its success. A VDR offers high-quality protection, and is commonly employed in litigation.
Manufacturing is characterised by contracts and projects that amount to billions of dollars which require effective management of documentation and security. A VDR is a convenient, efficient solution to this problem.
VDRs are used for a variety purposes, including M&As, due diligence and rounds of funding. Startups employ VDRs during fundraising rounds to share confidential documents such as business plans, forecasts and cap tables to potential investors. This is more efficient than traditional file exchanges by email, which allows for a more rapid and more smooth due diligence.