When your data is stored in a VDR you can establish security policies that require two forms of identification (such as a password, or a unique code that is sent to a mobile device) before allowing anyone check it out to access files. VDRs permit you to make user permissions expire after a set number of days in accordance with the date/time the files were uploaded. You can also decide to alert users when their access to the files is about to expire.

The most common use case for a VDR is due diligence in mergers and acquisitions, where multiple parties need to view confidential documents from the company which otherwise wouldn’t be accessible without the secure, online environment provided by a VDR. Other business processes that can benefit from a VDR are capital raising, reorganization and internal audits.

VDRs are also popular with venture capitalists and private equity firms, who typically manage a large amount of transactions simultaneously which require sharing massive amounts of data. VDRs are a favorite among venture capitalists and private equity firms who often handle a large amount of deals simultaneously and need to share reams of data.

Companies in a growth phase are often scrutinized by auditors and regulators, who need to ensure that the company has crossed every “i” and crossing every “t”. A virtual dataroom assists companies keep their data well-organized and accessible, while also keeping it secure. This facilitates easy review and audit.