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VDR providers offer a virtual dataroom software platform which allows users to share sensitive information in a secure environment. The platform allows large volumes of documents to be uploaded and monitored, while granting specific permissions for users for each document ensuring that confidential data can only be available to the people who should have access to it.

The majority of the modern VDR providers provide a modern and user-friendly experience that includes robust collaboration tools. They typically have robust analytics and reporting capabilities such as downloads and views of documents vector watermarking that is real-time, classification labels as well as malware detection, and more. The best providers adhere to strict security standards and certifications such as FedRAMP, FINRA, HIPAA and GDPR.

One of the most frequent situations where a VDR is used is for mergers and acquisitions (M&A). Lawyers, investors and accounting firms share sensitive information with other parties to allow them to assess the feasibility of a deal. It’s a lengthy and time-consuming process that is made easier by using a VDR. Another scenario is when a company finds itself in litigation and must retain documentation for later review. A VDR can help reduce the cost of searching through emails, faxes and other files to locate relevant information. The VDR is a great option to store all documents that are related to the lawsuit. Legal counsel can access the VDR at any time.