{"id":4219,"date":"2018-12-21T14:33:48","date_gmt":"2018-12-21T22:33:48","guid":{"rendered":"https:\/\/www.onehub.com\/blog\/?p=4219"},"modified":"2019-03-14T14:39:17","modified_gmt":"2019-03-14T21:39:17","slug":"top-use-cases-virtual-data-rooms","status":"publish","type":"post","link":"https:\/\/www.onehub.com\/blog\/2018\/12\/21\/top-use-cases-virtual-data-rooms\/","title":{"rendered":"Top 5 Use Cases for Virtual Data Rooms"},"content":{"rendered":"\n
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For many types of businesses, in a variety of industries, their data is among their most important assets. In an ever-changing online world, data security is of the utmost importance. Between hackers and new regulations and stipulations on users\u2019 online privacy, your company can never be too careful when it comes to protecting its information. That\u2019s where virtual data rooms can help.    <\/p>\n\n\n\n

It\u2019s important to note that data rooms shouldn\u2019t be confused with general secure file sharing scenarios. They are intended for very specific use cases. Virtual data rooms (VDRs) first originated in the financial industry. Today, M&A due diligence is still the top use case for a data room. When considering businesses that commonly exchange sensitive information online such as lawyers, large financial corporations, and many others, these data rooms are a must. In order to properly do their jobs, they need to know their data cannot be accessed by outside parties.    <\/p>\n\n\n\n

Ultimately, the right virtual data rooms will allow your business to focus on their work, their customers and their business partners rather than whether or not their online information is in good hands.   <\/p>\n\n\n\n

Explore the importance of virtual data rooms, as well as five use cases for the online storage rooms. Then, consider which VDR would be the best fit for your organization and begin better protecting your information today.  <\/p>\n\n\n\n

Why Are Virtual Data Rooms Important?<\/h2>\n\n\n\n

There are numerous reasons why virtual data rooms are imperative for a business that operates online. VDRs allow your company to operate more efficiently and more securely. They also can enhance the trust your business partners place in your company. <\/p>\n\n\n\n

Let\u2019s quickly review the definition of a VDR to ensure we\u2019re all on the same page. A virtual data room is a secure space online used to store and exchange information during various business transactions.  <\/p>\n\n\n\n

Consider businesses who routinely operate within the financial field, or lawyers who negotiate highly sensitive business deals. For them, it can make or break a business deal if their professional partners do not take their online security seriously enough. Worse yet, a security breach could have huge, legal consequences.   <\/p>\n\n\n\n

Next, let\u2019s explore some of the most common use cases for VDRs. You may be surprised at how these online storage platforms can enhance the way your company communicates with its clients and improve your business partnerships, regardless of the professional field you operate in.  <\/p>\n\n\n\n

#1. M&A Due Diligence<\/h2>\n\n\n\n

As we mentioned above, merger and acquisitions (M&A) due diligence is one of the most popular uses for VDRs today. Why is that? In a nutshell, virtual data rooms allow businesses to execute deals entirely online in these scenarios, rather than having to meet in person to sign documents or review paperwork. During due diligence, tons of confidential information is exchanged, so all parties need to be sure that their assets and intellectual properties are being safeguarded. Key stakeholders are sharing and collaborating on highly sensitive documents. VDR is used to help streamline this process by simplifying tasks and automating processes.  <\/p>\n\n\n\n

Specifically, for startups in the tech field, being acquired by a larger corporation is a common business practice (and one that many small companies hope for). Virtual data rooms for mergers and acquisitions offer many features that make going through a business merger significantly easier. VDRs are actually significantly more safe than traditional physical data rooms because all the information exchanged can be encrypted and controlled completely with user permission features.  <\/p>\n\n\n\n

VDRs also allow you to say goodbye to the idea of someone leaving the meeting with a document they\u2019re not supposed to have in their possession. These online rooms let you control who sees every file, and can even safeguard against cutting and pasting information within a document, or printing documents. <\/p>\n\n\n\n

#2. Capital Raising<\/h2>\n\n\n\n

Virtual data rooms are ideal for companies who commonly raise capital. Fundraisers require secure online spaces where financial information needs to be housed, sometimes for several weeks or months. They also typically involve a variety of people from many companies and in a range of professional roles. Thankfully, virtual data rooms make previewing content types like images, documents and other files, super easy. This ensures you find the exact file you need for your event, in less time.   <\/p>\n\n\n\n

VDRs also offer a user-friendly Workspace so everyone can remain on the same page when there are lots of moving parts of your fundraising event. You can assign tasks, post updates and even send users messages, all within your VDR. It also offers data transparency, which is critical for potential lenders and investors.<\/p>\n\n\n\n

#3. Legal Document Management<\/h2>\n\n\n\n

In terms of managing legal documents, VDRs are an excellent way to exchange information securely outside of your company\u2019s firewalls when you need to. It goes without saying that scenarios where extensive legal documents are present can be high-tension and fast moving. Virtual data rooms allow each party in a situation to have 24-7 access to documents in an organized, secure system.  <\/p>\n\n\n\n

When several lawyers from various law firms need to review and negotiate a large set of documents, you need an organized system online that you can trust. Consider specific situations, such as class action lawsuits that involve numerous people. A VDR lets your team easily and quickly assign new users permissions and upload various types of file formats. These situations are exactly what Onehub\u2019s VDRs are built for, due to their extensive role-based permissions and granular control at the folder and file level for users.  <\/p>\n\n\n\n

 
In terms of managing legal documents, consider some of the additional situations where virtual data rooms can be of help:  <\/p>\n\n\n\n