http://www.blackdataroom.com/the-growing-importance-of-data-room-software-in-todays-business-world/
Virtual data rooms (VDRs) allow companies to share important documentation with clients, investors and company leaders over the internet in a safe environment. VDRs eliminate physical paper and associated costs such as printing and storage, while allowing greater due diligence monitoring and efficiency.
Acquisitions and mergers
In M&A transactions, there can be a lot of paperwork to handle, each requiring careful review. VDRs make the due diligence process more efficient by allowing both parties to work in one place and cutting down on meetings 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 will often ask you to answer a series of written diligence questions. This can lead to several sets of documents. By sharing these answers and questions in a VDR with permissions for the viewer that are based on the team member of the investor or partner to avoid any unnecessary disclosure and make the process more efficient.
Strategic Partnerships
Similar to M&As you will require sharing a large amount of information with third parties as part of strategic partnerships. This is easily done by using the help of a VDR that allows you to organize your documents and make them available to the people you wish to view them. A reliable VDR will also let you modify your own terms of use that all users have to be able to agree to before they are able to access your data.