When significant transactions take place such as M&A or capital raising, both parties involved need to look over several documents. These documents can be extremely sensitive and require security to ensure privacy and compliance. A data room on the internet is a long-lasting solution that allows multiple parties access to and collaboration on sensitive documents.

Online data rooms come with a myriad of uses. One common use is the storage of corporate documents. It can be a crucial element of a compliance program or when accountants, lawyers and auditors are required for a review of the company’s documents. A secure virtual dataroom allows them to perform data-centric approaches to M&A strategy this without the threat of a breach or a violation of compliance.

A virtual dataroom is a great tool for managing intellectual property (IP). Startups and technology companies who are seeking investors can upload their IP disclosures and other documentation into a virtual environment, making it easy for investors to read them. The logical structure of the folder and metadata ensure that the relevant documents are easily located and speed the due diligence process.

Investment bankers frequently utilize an online data room for their work on capital raising and M&A processes. These processes require huge amounts of sharing of information between different stakeholders and a virtual data room is the ideal solution to accomplish this effectively. The granular permissions for documents (user and group-based) and watermarking options as well as the capability to revoke access remotely are just some of the features a virtual data room could offer for this purpose.