A virtual information room (VIR) is a digital repository that permits the secure storage and distribution of documents. VDRs can be used for a myriad of uses, including M&A and due diligence as well as legal documents management, capital raising, real estate transactions and regulatory risk management.
For instance, when an IT company is seeking investment and is seeking to raise funds, they can upload confidential revenue projections, IP ownership documentation and extensive financial records into an online data room that prospective investors can access securely with the right permissions. Investors can review the information quickly and easily, saving time and effort, while making sure that the most up-to-date and accurate information is available to make informed decisions.
VDRs can also be a secure and efficient way for private equity firms and funds to share their portfolio data with investors. They can upload quarterly and monthly reports to a VDR. This is an organization that encourages efficiency and transparency. Investors can easily request information, view documents, and monitor activity with an intuitive and interactive user interface.
In addition, they provide a secure and scalable platform for sharing documents, modern VDRs come with advanced AI features that can help companies save time. DFIN’s Venue for instance lets users streamline the process of reviewing contracts with intelligent redaction, auto-indexing as well as automatic scanning of words or phrases in scanned documents. Venue’s advanced file level auditory, two-way sync and robust encryption can reduce the risk of data loss and security breaches. Venue also lets businesses utilize a single login for managing multiple digital tools across the enterprise with single sign-on, maintain a consistent folder structure, and track data movement and user activity.
