A virtual dataroom (VDR) allows you to share files online as part of a due diligence process. They are used for M&A transactions, but they can also be useful for fundraising rounds or other business transactions. They provide many advantages including a more efficient due diligence process, secure document storage and sharing, advanced security features, and simplified collaboration.

VDR vendors often tout the time and cost savings Continue they can provide. They can reduce the need for paper indexing, photocopying, and printing as well as the cost of renting physical meeting spaces, courier services and office supplies. They permit participants to access the system simultaneously from any location in the world. This could accelerate due diligence and increase the chance that the deal will be concluded faster.

Another benefit of the VDR is that the data can be kept and accessed for as long as necessary without the fear of losing materials or having them affected by fire or weather. This is in contrast to keeping documents on a computer or server where they may be vulnerable to theft or other types of damage.

If a company in the field of technology is looking for investors, it is able to upload confidential revenue forecasts and intellectual property documentation in the dataroom for prospective investors. This can speed up the due diligence process and improve confidence of investors in the company’s prospects for growth. This could draw more bidders and increase prices for the company. A VDR could also be an excellent way to display the customer’s references and referrals, which can increase trust among investors.