VDRs can be used in a variety of business processes that require confidential data. Venture capitalists use VDRs as a tool to review documents of companies in connection with investment and funding processes. In addition, investment banking processes like IPOs and capital raising require copious documentation exchanges that are well suited for virtual data review.
A VDR enables multiple bidders simultaneously to conduct due-diligence, making the entire https://howtobeaphotographer.org/top-5-instagram-alternatives-for-photography/ process much faster. The ability to reach a larger audience of potential buyers will increase the likelihood of a deal being finalized faster than if it were conducted with only a few investors.
In addition, a VDR eliminates the cost of photocopying and indexing, which can be time-consuming. VDRs are accessible from anywhere and can save travel costs. VDR vendors like Ellington tout lower up-front costs and the fact that they can be used by all bidders at the same time.
Security is paramount in a VDR, as it is with all technology systems. Look for platforms that offer a fence view feature to prevent unwanted glances. They should also provide multi-factor authorization, IP-restricted users access and a history of page-bypage document viewing. Make sure that the solution adheres to SAS 70 and encrypts PDF files. Last but not least, make sure the vendor offers different project templates with customizable branding options.