A virtual dataroom (VDR) allows you to share documents online as part of a due diligence procedure. They are often used for M&A transactions but are also useful for fundraising rounds or other business transactions. They offer many benefits, such as a streamlined due diligence process secure document storage and sharing advanced security features and a streamlined collaboration.

VDR vendors often boast about the time and cost savings they bring. They can eliminate the requirement for photocopying, paper and indexing as well, as they can reduce cost of renting meeting rooms, courier services and office supplies. They allow participants to access the system at any time from anywhere in the world. This will accelerate due diligence and increase the likelihood that the deal will be concluded faster.

Another advantage of the VDR is that the data can be safely stored and accessed for as long as is necessary without the fear of losing material or being affected by fire or weather. This is in contrast to keeping documents on a server or computer my blog where they may be vulnerable to theft and other forms of damage.

If a company in the field of technology is seeking investors, it can upload confidential revenue forecasts and intellectual property documentation into the dataroom to be available to potential investors. This can accelerate the due diligence process, and increase confidence of investors in the company’s prospects for growth. This could draw more bidders and increase the value of the company. A VDR is also a great way to showcase customer references and referrals which can help increase investor confidence.