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Common Uses for a Virtual Data Room

A virtual data room is a great tool to share sensitive information with the stakeholders in your business, if you have it. These online data rooms offer high-level security infrastructure and access 24/7 via a website page or dedicated tablet applications. They also offer numerous features to speed up the work with files and documents. They include multilingual search, OCR and smart AI categories, translation, custom watermarks, and more.

Determining your objectives is the first step in selecting the right VDR vendor. Once you’ve identified your objectives then you can begin a more thorough process of selection. Start by looking through the internal reviews posted on the website of the provider as well as any third-party reviews from customers via platforms such as Trustpilot or Software Advice. Check for compliance certificates that demonstrate the company’s commitment to high security standards. These include SOC 1 & 2 as well as ISO 27001, HIPAA, and GDPR.

Investment banking is one of the most popular uses for virtual datarooms. These processes usually require a significant amount of documentation and an extremely high level of security. They also require a smooth communication between different stakeholders, which is where a VDR can come in handy.

Accounting and litigation are also typical use for a VDR. Both of these industries require sensitive information and have to share it with a variety of parties at the same time. In these situations, a VDR allows accountants and attorneys to work together and provides them with a single point of access.

Real estate also makes use of a VDR to collaborate on projects with partners. During property sales it is necessary to share lots of documentation with investors as well as other third-party businesses. This can be time-consuming and difficult when working across different locations and time zones. A VDR allows real estate agents to use one platform to exchange and discuss documents and many modern VDRs have an eSignature option which speeds up real estate transactions.