Both parties need to review a lot of documents when important transactions such as M&A and capital raisings take place. These documents can be extremely sensitive and therefore the information needs to be secured for compliance and privacy reasons. This is the reason why an online data room solution comes in – it’s a virtual space that allows different parties to access and collaborate on sensitive documents safely.

Online data rooms come with a myriad of applications. One common use is to store corporate documentation. It could be a critical part of a compliance process or when lawyers, accountants and auditors have to examine company records. A secure virtual dataroom enables them to perform this without the threat of a breach or violation of compliance.

A virtual dataroom can be a useful tool for managing intellectual property (IP). Startups and tech companies that are seeking investors can upload their IP disclosures into a digital environment. This makes it easier for potential investors to review. The logical structure of the folder and metadata ensure that relevant documents are easily accessed which speeds the due diligence process.

Investment bankers also often use an online data space during their work on capital raising and M&A processes. These processes require massive quantities of information sharing between different stakeholders and a data room offers the ideal solution to accomplish this efficiently. The flexible document permissions (user and group-based) and watermarking functions and the capability to remotely revoke access are just some of the features a virtual data space can provide for this purpose.

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