A virtual dataroom (VDR) can be a secure cloud-based repository which facilitates collaboration and sharing of documents for business transactions. These transactions can be extremely complex and require careful document storage and management to guarantee transparency for investors and regulatory agencies. A VDR is a crucial instrument for companies undergoing an IPO in that it can help to streamline the process by providing a central point to manage and organize the collection of official statement documents, and the capability to share them with interested parties.

A good VDR solution should have various levels of security protocols, which include a robust permissions matrix, two-factor authentication, encryption technology, document watermarking tools for users, audit logs and more. A VDR should enable administrators to track who has viewed documents and when. This is crucial for due diligence teams in order to detect security risks that could be present.

The best VDRs will also provide users with the option to design custom dashboards and templates for reports to allow them to customize their experience when viewing reports and get access to the most important data points at a glance. This helps streamline the workflow of companies and helps to cut down on time. Additionally, the VDR will allow users to upload both single files and large volumes of data simultaneously using drag-and drop functionality.

The best VDRs include a backup server so that they can keep operating even when their primary servers go down. This is an essential feature to look for since it will stop any delay during a sale.