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A virtual information room is a cloud-based service that allows users to securely transfer documents and files. These platforms come with advanced features like simplified user credentials, granular control of access, customizable permissions and activity monitoring.

These features allow organizations to meet their security requirements for projects, while maintaining the same workflow and ensuring data confidentiality. VDRs can also incorporate security protocols that are based on industry regulations, such as GDPR. These security features ensure that users only see the information they require. This helps prevent information breaches and misunderstandings which could delay deals and cost companies millions.

Private equity firms, investment banks firms as well as other financial institutions use VDRs to handle large volumes of confidential documents during M&A deals. With the use of the VDR to share and store files, these companies can conduct due diligence without the need to transfer documents between parties or risk losing sensitive information.

VDRs are also extensively used by life science companies, like biotechs and pharmaceuticals. To collaborate with partners on clinical trials and R&D these companies need to be able to securely communicate in real time. They also need to comply with strict regulations such as HIPAA or ISO. VDRs that have features like zoomable thumbnails, watermarking and the ability to prevent screenshots allow life sciences companies to accomplish this while safeguarding their most sensitive information.

Other important applications for VDRs include capital raising real estate transactions and risk management for regulatory compliance. By integrating VDRs into their workflows they can work on projects in real time and securely regardless of the location they are in.