The Benefits of a Virtual Information Room

A virtual information room (VIR) is an electronic repository that allows the secure storage and dissemination of documents. VDRs can be used for various purposes, including M&A due diligence, capital raising legal www.dataroomconsulting.com/pros-and-cons-of-cloud-computing document management real estate transactions, and regulatory risk management.

For example, when tech companies seek investment and is seeking to raise funds, they can upload confidential revenue projections, IP ownership documentation and detailed financial records to an online data room which potential investors can access securely with the proper permissions. Investors can quickly look over the information, conserving time and energy, while ensuring that the most reliable and up-to-date information is available to make decisions.

VDRs are also a safe and efficient method for private equity firms and funds to share their portfolio information with investors. They can upload monthly or quarterly reports to the VDR that provides an organized system which promotes transparency and efficiency. Investors can quickly access the documents or request information, and also track activity through an interactive and intuitive user interface.

In addition, they provide a secure and flexible platform to share documents, modern VDRs come with advanced AI functions which can help companies save time. DFIN’s Venue, for example lets users streamline the process of reviewing contracts using intelligent redaction, auto-indexing, and automated scanning of words or phrases within documents. Venue’s advanced file-level auditing system, two-way sync as well as robust encryption can reduce the risk of data loss and security breaches. It also lets companies make use of one login to manage multiple digital tools within the company using a single sign-on. It also helps maintain a consistent folder structure and provide reports on data movement and user activity.