A virtual dataroom (VDR) provides a secure platform to share sensitive documents. It provides high-security with access permissions that can be customized. As opposed to the basic storage solutions for data that typically provide only downloading and viewing the files, VDRs offer more than just downloading and viewing. VDR can also offer search functionality as well as easy collaboration between multiple parties and the ability to alter access rights for every user.
When it comes to M&A deals due diligence will require a large amount of information to be reviewed by various parties. This can lead to long and drawn-out deals, or kill the deal altogether if the documentation isn’t up-to-date and properly prepared. A VDR provides a centralized location that allows all the relevant information to be shared and viewed by multiple parties, which eliminates delays caused by miscommunication, or the absence of documentation.
VDRs can be used for a variety of other business purposes, including preparing portfolio companies for public listing or for fundraising where the company is required to share confidential financial documents with other parties. These tools are very convenient for investors since they can arrange documents into logical subfolders that make it easier to navigate and also grant access rights in a single click.
A virtual data room is a great way to share confidential intellectual property in the life sciences industry to potential investors and partners. A VDR’s detailed tracking of document activity allows users to identify who has visited what documents and for how long. This information is useful for making sure that a project has been thoroughly researched, generating interest from potential investors and avoiding the risk of revealing sensitive information to the wrong people.