VDR database is a digital repository where critical business information can be shared and reviewed, with a full audit trail that reveals who saw what was viewed, when, and for how long. This makes it a fantastic tool for M&A diligence. Mergers and acquisitions can involve many documents that require careful review to ensure smooth transactions. VDRs are a safe, efficient way to store and manage the information on the cloud. They shield data from accidental or unwanted views.
Law firms often use VDRs to simplify the collection, organization and management of client documentation for criminal and civil litigation. A VDR can also be used to share information between clients and third parties involved in real estate and estate planning transactions. Mortgage brokers, both regional and local, and banks make use of VDRs for managing the collection, organization and sharing of documentation from customers regarding loan applications and processing.
Venture Capital and Private Equity Firms review multiple deals at once, resulting in a large amount of information which needs to be arranged. These companies can share sensitive information in a secure environment with their portfolio companies, investment partners and auditors through a VDR.
Unlike free document storage products, such as Dropbox or Google Drive, VDRs allow users to define specific permissions for each user so that access can be revoked instantly. They also come with advanced security features like watermarking encryption, 256-bit encryption, multifactor authentication, invitation delays and baked-in infrastructure security. Furthermore, VDRs like Venue have built-in activity tracking that helps you create reports on file access for investor parties, employees, regulatory bodies, or other stakeholders.