Virtual data rooms are becoming more prevalent in businesses as the e-commerce and IT industries continue to grow. Presently, VDR usage is dominated by the BFSI (banking, financial services, and insurance) industries. They utilize VDRs most often for due diligence, M&A transactions and other business transactions.

VDRs allow lawyers, regulators and other parties to access documents remotely and in a safe manner. They also permit multiple stakeholders to collaborate on a single project simultaneously without the need to meet physically. This can save lots of time, money and resources. It also reduces the threat of thefts that are physical and security breaches. In addition, it provides the log of all activities and modifications made to files and folders.

In the case of M&A transactions, it’s helpful to organize all the multitude of information that is involved in a deal, like financial records tax receipts, and legal issues. They can be a challenge to share with third-party users, especially when they’re spread across the globe. Virtual data rooms can speed up the process making it easier for all users to access and manage data.

Another example is sharing of clinical research documents and licensing documents. Life Sciences companies will benefit from a digital platform that allows them to share their documents and track its status with both external and internal stakeholders. This can make it easier for reviewing documents, prevent miscommunications, and ensure that the documents are in compliance with regulations. Additionally, it can help save a lot of time by eliminating the need for administrators to distribute new versions of documents by messaging or email, and then be aware of duplicate requests.