A virtual information room is a cloud-based system that allows users to securely exchange files and documents. These platforms are equipped with advanced features such as streamlined user credentials, granular control of access, customizing permissions and activity tracking.

These capabilities allow companies to comply with the security requirements of their projects while maintaining a seamless workflow and ensuring data privacy. VDRs also have the ability to incorporate security protocols based on industry regulations, such as GDPR. These features ensure that users only see the data they require. This prevents data breaches and misinterpretations, which can delay deals or cost businesses millions.

Private equity, investment banks, firms and other financial institutions utilize virtual document repositories (VDRs) to manage large volumes confidential documents during M&A transactions. By using a VDR to share and store files, these firms can conduct due diligence without having to transfer documents between parties or risk losing sensitive ideals board data.

VDRs are also widely used by life science firms, including biotechs and pharmaceuticals. These businesses need to be able communicate in real-time and secure manner with partners to collaborate on clinical trials or R&D. They also need to meet strict regulatory compliances, such as HIPAA and ISO. VDRs with features such as zoomable thumbnails, watermarking and screen-scraping prevention allow life science companies to meet these requirements while safeguarding their most sensitive data.

VDRs are also used for capital raising, real-estate transactions, as well as regulatory risk management. By the integration of VDRs into their workflow they can work on projects in real-time and safely, regardless of where they are located.