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A virtual information room (VIR) is a digital repository which allows secure storage and dissemination of documents. VDRs can be used to support a variety of uses, including M&A and due diligence and legal documents management. capital raising, real estate transactions and regulatory risk management.
For example, when an IT company is seeking investment in the future, they can upload their confidential revenue projections, IP ownership documentation and detailed financial records into an online data room that prospective investors can access safely with the appropriate permissions. Investors can look over the information quickly and efficiently, making it easier to review the information while making sure that the most up-to-date and accurate data is available to make informed decisions.
VDRs also provide a safe and efficient method for private-equity firms and funds of all sizes to share information about their portfolios with their investors. They can upload monthly or quarterly reports to a VDR which offers an organization level which promotes transparency and efficiency. Investors can easily seek information, access documents, and monitor activity with an intuitive and interactive user interface.
In addition to providing a secure and flexible platform for document sharing, the latest VDRs come with advanced AI capabilities that can help companies save time. DFIN’s Venue for instance allows users to simplify the process of reviewing contracts by using intelligent redaction, auto-indexing and the automatic scanning of phrases or words within scanned documents. Venue’s advanced file-level audio system, two-way sync as well as robust encryption can also help reduce data loss and security breaches. It lets companies manage multiple digital applications throughout the enterprise using a single login, keep a consistent file structure and track user activity and data movement.