http://www.blackdataroom.com/the-growing-importance-of-data-room-software-in-todays-business-world/

Virtual data rooms (VDRs) allow companies to share crucial documents with investors, customers, and the company’s leadership via the internet in a secure environment. VDRs reduce paper and expenses, such as storage and printing, while offering greater efficiency and due diligence supervision.

Mergers and Acquisitions

In M&A transactions, there could be a lot of paperwork to manage, each one requiring careful review. VDRs can make due diligence more efficient since they allow both parties to collaborate online and reduce meeting costs. In addition, the best online data room providers offer advanced features such as document indexing and redaction (blacking out areas of files so that personally-identifiable information remains private).

Fundraising

Venture capitalists or BD partners may ask you to respond to a series of written diligence questions. This can lead to numerous sets of documentation. By sharing these question and answer sets in a VDR with viewer permissions based on investor/partner team members, you can reduce the need for disclosure and make the process much more efficient for everyone involved.

Strategic Partnerships

Similar to M&A, during strategic partnerships you’ll probably need to disclose a significant amount of data with third parties. This can be accomplished easily with VDRs. VDR which allows you to organize your documents and make them easily accessible to the people you would like to see them. A reliable VDR allows you to set your own terms and conditions which each user must agree to before they can access your data.