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Virtual data rooms are necessary for M&As, due diligence and other business processes. They permit you to keep large files in a secure manner that are difficult to manage with traditional tools such as email or basic cloud storage. They also provide access settings as well as the proper levels of security for the most sensitive documents. VDRs save time and money since they reduce the number of cybersecurity tools that companies must use.

The most frequent use for a VDR is to manage the due diligence process in M&A. The sell-side requires a secure platform to store documents for review by the buy side, and potential investors need to be able access all the relevant information all in one location. A good VDR comes with a set of robust tools for collaboration that support this, such as live-chat and a Q&A area. It will also let users track activity and monitor the way in which the dataroom is utilized.

Not all VDRs come with the same features. Some VDRs offer more advanced features, including AI-based redaction. For example DFIN’s Venue offers a suite of AI functions that enable significant efficiencies and improved accuracy in contract review. It helps streamline workloads through auto-indexing and previewing of documents as well as translation features. It is important to note that different providers have different cost structures, and it is important to look at these aspects to ensure that you’re getting the most value for budget.