What Is a Data Room?

A data room is a virtual location where multiple stakeholders can access and share sensitive information in a secure setting. It is used for M&A due-diligence (a process whereby businesses evaluate the potential risks of purchasing another company), fundraising, legal proceedings and various other types of business transactions.

A VDR lets you upload documents and share them with users who have been granted permission by the administrator. This allows you centralize all your documents to make them easier to review. Users can also benefit from features such as search, metadata and in-document navigation to efficiently discover and view the documents they require. Additionally, users can track the frequency at which they interact with documents in a data space and gain visibility into who is able to view what information.

An investor data room is an efficient tool to leverage during the process of funding. It allows you to upload confidential financial data that includes revenue projections, IP ownership documentation, and financial records that are detailed, for investors to review thoroughly. This can speed up funding and increase investor confidence in your company.

While many businesses utilize email to share and store documents, this can be messy and inefficient. 46% of https://productdataroom.com/transformation-processes-with-ma-vdr/ employees say it’s difficult to find the information they need in their company’s emails. 83 percent of respondents said they had to recreate documents because they couldn’t find original versions. A data room is an alternative to this tangled document sharing and storage.