When it concerns sensitive documents, M&A deals and other corporate transactions, a virtual room is an essential tool. VDRs are more secure than file sharing tools and permit for professional document management when dealing with sensitive files.

But how does a VDR work? What are the ways these tools can help users to swiftly and effectively share a large number files with multiple parties in a structured manner? These tools let you control the access to specific folders and documents by using granular permission settings. The ability to alter permissions at the folder and document level makes it easier for administrators to provide different levels of access to users in a scalable manner.

Another feature that is important is the built-in tools for controlling versioning that allow you to manage and present a clean and clear overview of documents while conducting due diligence or collaboration. By allowing administrators to assign folders to different groups of users, it is possible for users to look at the relevant documents and not be distracted by irrelevant information.

Often, when companies seek funding from investors, they must to prove their ability to manage and present large amounts of documents in a quick and efficient manner. A virtual data room is an extremely efficient tool for any company that wants to show off its capabilities and gain confidence of potential investors. For example, a technology startup seeking funding could provide confidential revenue projections as well as IP ownership documents into the data room for investors to read and make informed investment decisions.