Virtual data room solutions have become a key part of businesses with complex documents and transactions. They offer secure spaces for companies to store confidential documents. Below are the five useful ways to use a data room:
1.) Corporate Document Sharing
Company managers and directors communicate with one another, clients, vendors, and partners daily. They use email and digital messaging platforms like slack to share non-sensitive data about:
- Scheduling meetings
- Sharing news articles
- Tracking project progress
As for confidential information, you need a platform with top-notch security. A virtual data room (VDR) offers you such protection. The platform helps to enforce security policies and password-protected access in your company. This function gives you and your team or clients a secure space to share sensitive documents like:
- Personnel reports
- Trade secrets
- Financial data
- Strategy sessions
- Legal issues
The data rooms protect even work-in-progress data and documents. They let you store archived online corporate records and documents. With the right VDR, you can build efficient, safe communication with other companies and partners.
2.) Board Portals
Board portals help foster teamwork among company directors and managers. They do this by providing a platform for sharing confidential documents. They allow directors to track everything going on in each department.
Data rooms offer a great way to boost the board portal’s efficiency and security. The software gives board members and managers password-protected access to board portals. This feature allows them to discuss sensitive company matters and share documents.
VDR board portals allow directors to enforce policies that control what users see and do. They limit corporate documents and videos so users can only view, download, or print them. They can be involved in the following:
- Adding tamper-proof watermarks
- Blocking file printing
- Restricting screenshots and screen scraping
- Encrypting downloads
- Limiting offline document access
These measures protect documents and videos shared on the board portal. They allow the board portal to meet compliance and transparency requirements for safety.
3.) Investment Communications
Sharing reports and statements with limited partners (LPs) is key to every investor. It aids in tracking how your investments perform. Use virtual data rooms to save time and avoid errors or cyberattacks. They offer a safe and straightforward way for investors and stakeholders to communicate.
A VDR creates a secure workplace for your team to work with account managers, analysts, and other experts in remote locations. These collaborations with investor parties are ultra-secure.
4.) Litigation Support
Lawyers and attorneys always deal with paperwork. These law experts conduct due diligence by processing lots of documents each day. They offer access and share sensitive information with:
- Clients
- Other legal teams
- Law experts
- Witnesses
When you use a virtual data room, all sensitive legal documents you share remain safe. Some VDR vendors provide security policies customized to fit the needs of a law firm. This function enables them to handle sensitive documents without worrying about safety issues.
VDRs provide clients or customers with access to information about their cases. You’ll know if the client viewed the required documents and their actions. It removes the need for printing papers and makes document tracking easier.
5.) Life Sciences
Companies offering medical devices, biotech, and therapeutics are prone to data theft. They share information with interns, staff, and partners, potentially compromising their data security. Life science companies use online data rooms to protect sensitive data.
A VDR creates a haven for life science companies to store and share data easily. It allows you to control who accesses or views documents and how they use them. Such control restricts hackers from stealing your company’s confidential information. This technology is suitable for development companies like:
- Medical device companies: VDR protects all information shared during the development life cycle of medical devices.
- Therapeutics development companies: Data rooms protect valuable data about drugs and therapeutic products. They help adapt scientific tactics to discover new therapeutic approaches.
- Equipment diagnostic companies: Data rooms offer secure platforms for storing and sharing crucial equipment diagnostic documents. It offers a secure way to track and manage your intellectual property (IP) assets.
Start Using a Virtual Data Room Today
Using reliable virtual data room solutions in complex business transactions is beneficial. The software provides a secure cloud-based platform to store and share sensitive documents. That’s why many businesses are using it for corporate document sharing. It helps with investor communications, board portals, life sciences, and legal support.
