The virtual data room (VDR) market is growing rapidly due to the necessity for companies to centralize all digitally secure documents used in important business transactions and applications. This allows auditors, attorneys, internal and outside regulators, and others to review and access the documents in one location, which provides transparency and efficiency.
The banking industry, especially investment banks, is the biggest user of VDR solutions. They frequently need to divulge large quantities of sensitive documents for investment management processes such as IPOs or capital raising. This type of disclosure usually requires a large amount of collaboration and a secure platform. VDRs are ideal for this type of sharing, as they offer 24/7 access, extensive security features, and a variety of collaboration tools.
Companies in the biotech and healthcare industries also utilize VDR services, since they have to share confidential information with partners, customers and regulators from all over the world. The data could range from research results to patient data. It’s important to find a provider with robust features, such as document management as well as compliance and archiving. VDRs must also have an option to search to assist users in finding relevant documents quickly.
Real estate is a different industry that utilizes VDR solutions. Land and housing deals require copious documentation that needs to be shared. When selecting a vendor, look for a company that can customize folder layouts and permissions to make it easier for the due diligence process. It’s important that the vendor review and updates the folders regularly to ensure that only pertinent and current documentation is examined.
