When businesses are working with confidential documents, such as intellectual property, accounting records and financial reports, it is essential to make sure that these sensitive documents are not in the hands of unauthorized individuals. Many companies use secure virtual dealrooms (VDRs) to protect their information.
VDRs offer a secure environment for sharing information in a secure manner. They use encryption advanced access permissions and dynamic watermarking to block unauthorized access. Additionally, they monitor user activity and provide detailed audit trails for file views and downloads. This lets businesses monitor the type of data that is viewed by whom and at what time.
The immovable property industry often requires the sharing of large amounts documentation with multiple parties. The need for security is extremely important, as the company’s intellectual property is vital to its success. A VDR offers a high degree of protection, and is commonly used in litigation.
The manufacturing industry is characterized by billion-dollar contracts and projects, which require effective management and protection of the documents shared. A VDR offers a simple and efficient solution to this challenge.
VDRs can be used for a variety of purposes, including M&As, due diligence and funding rounds. Startups utilize VDRs to share confidential business plans as well as forecasts, cap tables and other documents with potential investors during fundraising rounds. This is more efficient than traditional file exchanges through email, which allows for a more rapid and more efficient due diligence process.