A virtual information room is a virtual repository for safe storage and distribution of documents. VDRs are employed for a myriad of use cases including M&A and due diligence legal documents management, capital raising and real estate transactions, as dataroomconsulting.com/pros-and-cons-of-cloud-computing/ well as regulatory risk management.
For example, when tech companies seek investment, they can upload confidential revenue projections, IP ownership documentation and complete financial records into an online data room which potential investors can access safely with the proper permissions. Investors can quickly and easily go through the information, thereby saving time and energy, while ensuring that the most accurate and up-to date information is available to make informed decisions.
VDRs also provide a safe and efficient way for private-equity firms and funds of all sizes to share portfolio data with their investors. They can upload monthly and quarterly reports to the VDR. This is an organization that encourages efficiency and transparency. Investors are able to easily access the documents to request information, as well as track activities through an interactive and user-friendly interface.
In addition to offering an efficient and secure platform for document sharing, modern VDRs offer advanced AI capabilities that can help companies save time and money. DFIN’s Venue, for example, allows users to streamline the process of reviewing contracts by using intelligent redaction, auto-indexing and automatic scanning of phrases or words within scanned documents. Venue’s advanced file level auditory system, two-way sync as well as robust encryption can also reduce security breaches and data loss. It lets companies manage multiple digital applications within the enterprise using a single login, maintain a consistent file structure and monitor user activities and data movement.
