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A virtual data room (VDR) allows businesses to share and review files in a secure online space. It can improve efficiency in collaboration, reduce dependence on physical meetings, and speed up the process of completing projects. VDRs aren’t suited to all companies. In some instances, businesses have to use a physical meeting room to safeguard confidential information.

In M&A VDRs are often used to store sensitive information. Using the VDR during the pre-deal process reduces the time needed to go through these documents. It also provides bidders and stakeholders remote access.

Furthermore, the more secure measures provided by many professional VDRs (such as info and interaction encryption two-step authentication, separate hosting centers, infrastructure and backups that are protected) could prevent cyber-attacks and data breaches that may cause significant financial loss or reputational damage.

A few of the newest virtual data rooms, such as DFIN’s Venue have AI and machine-learning functions built-in, allowing them to be able to respond quickly to the needs of their users. This helps to simplify and speed up contract review, reduce redaction, and also provide greater functionality through auto-indexing as well as full-text searches. These features can dramatically increase the speed and accuracy of a company’s internal workflows while increasing efficiency. This allows companies to concentrate on their core business needs and save money on office equipment and disaster recovery costs.