Last year The Economist argued that “the world’s most valuable resource is no longer oil, but data”. This statement is one that is quickly garnering traction in the corporate world. Securing and maximising the utility of your confidential data for heavy weight projects is a not just a smart move but a necessary one. Find out what exactly is a data room and how can it help you to better manage, optimise and realise your projects.
What is a Data Room?
A virtual data room allows users to securely manage documents and serves as a central point of contact for internal and external project collaborators from various industries. Secure software allows users to easily upload thousands of files, control user access and collaborate securely, while tracking user activity through rich statistics and user-friendly tools like memo sharing, document annotations and instant alerts. The data room market is set to reach 1.895.0 million USD by 2022 (up from 942.2 million in 2017) as increasing volumes of business data, data privacy regulations and a growing need for intellectual property and risk management are major factors in charging this growth. Demand is in for data accuracy, security and accessibility.
Physical vs Online Data Rooms
Physical data rooms were once the standard way of storing and reviewing sensitive documents. This meant that stakeholders had to travel to a secure location at set times and complete paperwork under close supervision. Although a physical data room offered strong control, it was slow, costly and limited to a few people at a time. In contrast, online or virtual data rooms provide a secure, cloud-based environment in which authorized users can access, share and collaborate on documents from any location. A online data room offers advanced features such as encryption, granular access permissions, watermarking and activity tracking, enabling faster due diligence, lower costs and greater efficiency in today’s data-driven business world.
Meeting Modern Demands for Security, Access and Control
Companies increasingly face pressure to protect sensitive information, ensure compliance, and execute transactions quickly. While traditional data rooms allow for basic access, they usually lack the flexibility, speed, and security that today’s digital workflows demand.
Modern data room software enables the secure storage and sharing of confidential documents within a secure place, often hosted in certified data centers. With the ability to share documents during high-value deals, manage access permissions, and support multiple due diligence processes, a virtual deal room gives users full control over who can access confidential data and how it is used.
Data rooms provide several benefits that support business agility and regulatory alignment
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Advanced security measures to protect against unauthorized access
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Robust audit trail functionality and version control
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Granular access permissions and granular access controls to tailor user rights
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Powerful tools for data management that simplify complex diligence processes
By using a digital platform from a trusted data room provider, companies can confidently use data in a compliant, efficient, and scalable way.
Uses of Virtual Data Room
Virtual Data Rooms (VDRs) are versatile tools that enable organizations and individuals to manage and share sensitive information securely and efficiently. They are applied across a wide range of industries and business processes, including the following:
- Board Meetings: Boards use VDRs to distribute confidential meeting materials, reports, and voting documents in a controlled environment.
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Mergers & Acquisitions (M&A): Virtual data rooms are essential for securely sharing sensitive documents during due diligence between buyers, sellers, and advisors.
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Fundraising: Startups and growing companies use VDRs to securely share financial data, forecasts, and legal documents with potential investors while maintaining full control over access. Investors can review confidential materials, submit questions, and upload their own information in one central location. Fundraisers gain valuable insights through detailed reports showing who accessed the data room, which documents were viewed, and how much time was spent on each page, enabling real‑time analysis of processes and individual investor engagement.
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Venture capital: Venture capital firms use VDRs to evaluate potential investments by reviewing business plans, financial data and legal documents in a secure environment. VDRs allow them to track which documents attract the most attention, streamline communication with portfolio companies, and maintain a clear audit trail throughout the investment cycle.
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Strategic Partnerships: When exploring collaborations, partners can use virtual data rooms to share important files and sensitive information. They can also set specific permissions to determine who has access to what.
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Secure File Sharing: Any organization needing to share sensitive data (e.g., legal documents, patents) can use VDRs to ensure encryption and access tracking.
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Consultancy: Consultants often use VDRs to review client data securely, especially in regulated industries or sensitive projects.
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IPO Preparation: Companies preparing for an initial public offering store and share financial statements, audits, and legal records with underwriters and regulators. VDRs streamline due diligence and make it easier to manage last-minute document requests.
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Legal Proceedings: Law firms use VDRs for e‑discovery, managing evidence, and sharing case files securely with opposing counsel or courts. They benefit especially from advanced search functions, version control, and a clear audit trail for legal compliance.
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Real Estate Transactions: Buyers, sellers, and brokers use VDRs to manage contracts, leases, and financial details during complex property deals. This centralized access speeds up negotiations and ensures that all parties are working with the latest information.
To mention just some examples. As business processes continue to grow more complex and data-driven, the relevance and use of VDRs will only expand further.
By Industry: How Can a Data Room Help Your Project?
Pharma and Bio-Tech: These industries have been hit hardest by data breeches as the value of the information they possess is incredibly valuable to criminals. DiliTrust Data Room provides a secure and controlled platform to share confidential data to an unlimited number of users.
Real Estate: Property management involves a significant amount of document management for notaries, firms or real estate management companies. Large quantities of documents must be made available to engineering firms, architectural firms and potential buyers during the purchasing process. Our data room facilitates efficient document dissemination of crucial documents during these transactions.
M&A and Corporate Finance: A significant volume of confidential information is generated and exchanged during mergers and acquisitions. In investment banking, virtual data rooms play a crucial role by enabling banks to present financial, legal, and commercial information to potential investors across different industries in a secure environment. Our data room maximizes team productivity and performance, accelerates transaction speed, and minimizes both the direct and indirect costs of audits.
Energy and infrastructure: Large infrastructure and energy projects involve numerous stakeholders, including engineers, contractors, regulators and investors. Virtual data rooms provide a centralised platform for managing permits, technical drawings, contracts and compliance documents, ensuring that everyone has secure, real-time access to the latest information and significantly reducing project delays.
Life sciences: Companies in this sector, including medical device manufacturers and research institutions, work with highly sensitive data relating to clinical trials, regulations and intellectual property. VDRs enable the secure sharing of study results, product documentation and compliance records with partners, regulators and research teams, helping to accelerate innovation while adhering to strict data protection standards.
Virtual Data Rooms for Legal
Virtual data rooms are a common resource for those involved in financial transactions, capital raising, IPOs and other business deals.
Yet no industry is more synonymous with overwhelming amounts of paperwork than the legal field. Today, new technology and recent innovations in electronic document sharing are transforming this traditional workflow. Instead of overflowing filing cabinets, law firms and legal teams now rely on virtual data rooms, embracing their role in streamlining the secure exchange of documents for all types of legal proceedings.
3 key ways a DiliTrust Data Room can help your business:
1: Securing your confidential data
Data security is the primary motive for opening a virtual data room as it affords you the security that paper files cannot. Important projects remain secure thanks to strong authentication and intrusion detection. What is more, our data is hosted in France, Canada and Dubai, which ensures our clients data is not subject to the U.S. Freedom Act and Cloud Act.
2: Data Control
DiliTrust Data Room administrators completely control access rights to confidential data making project collaboration fluid and secure. One single account is used to manage all data rooms and activity reports which illustrate connections and consultations.
3: Document Management
The process of document management is rendered easy thanks to a virtual data room. All users can avail of 24/7 support from an experienced multi-lingual support team a each step of the way, including setting user access rights and invitations. Administrators and users also receive requests and sending alerts to enhance confidential document management.
Conclusion: Why Your Company Needs a Virtual Data Room
In today’s complex business landscape, organisations use virtual data rooms to store and share critical documents in one place, replacing outdated physical data rooms that often lacked flexibility and security. VDRs allow users to create different rooms for multiple projects, maintain granular access and permissions, and streamline the due diligence process.
Virtual data rooms support secure file sharing and seamless integration with your existing system. They also include key features such as bulk upload, audit trails, and secure file storage, making it easier to view, track, and review who can access what. This functionality makes it easier to collaborate with third parties, reducing the time and cost involved in managing sensitive documents.
As data room providers improve their room software and data room features, organisations may now experience a smoother document sharing process, while maintaining compliance and regulatory standards. Virtual data rooms ensure you stay compliant and competitive—anytime, from any physical space, and without compromising on security.
About DiliTrust Data Room
DiliTrust Data Room is an effective solution for securing and sharing your confidential data during sensitive projects. Our solution offers optimal traceability of confidential information and is adapted to all types of secure exchanges: mergers & acquisitions, private equity, out-licencing of intellectual property, industrial project financing and restructuring. DiliTrust Data Room is offered by subscription. Three editions are available, depending on the degree of assistance you want. The number of users and the volumes are not limited, no additional invoice is issued when the data room closes: you have total control over your costs. Contact us today to see how our services can help you take control of your secure data storage and elevate your business operations.
