A virtual dataroom is a repository online that allows documents to be saved as well as distributed and tracked under the control and discretion of the administrator. This makes it perfect for supporting complicated business processes and projects that require disclosure of confidential documents to third parties outside of the firewall.

Online data rooms are commonly used in M&A transactions, to help buyers with their thorough due diligence. The fact that all relevant documentation is together allows for quicker and more efficient review, and helps ensure the confidentiality of the documents.

Investment banks are among the most frequent users of VDRs. They can be used by both the buy-side as well as sell-side of financial transactions such as mergers and acquisitions. They are required to review and access large numbers of sensitive documents, which requires reliable storage and collaboration these details between several stakeholders across various locations and time zones.

Life science companies operate in highly controlled environments, with multiple investors and partners as well as having to share a variety of sensitive documentation regularly. They typically have to raise money or prepare for an IPO. VDRs provide a secure platform to collaborate and share information, with detailed activity tracking that makes it easy to track who has accessed what documents.

Top data room providers provide many features to make document management easier and facilitate collaborative work. They include a simplified user interface, simple multi-project management, the ability to set permissions that are specific to each user, and a 24 hour support team. Many data room providers offer flexible pricing, including an annual subscription which allows for projects to be priced lower as well as the flexibility to start or pause projects at any point.