A virtual dataroom (VDR) offers the security of sharing sensitive documents. It offers high-level security with access permissions that can be customized. A VDR is more sophisticated than the rudimentary storage options, which typically only allow viewing and downloading. It also permits simple collaboration between multiple parties, and can customize access rights.
During M&A deals, the due diligence process will require a large amount of information to be reviewed by various parties. It can cause long and drawn out deals, or even the demise of the deal in the event that the documentation isn’t complete and prepared properly. A VDR allows all relevant information to be shared, viewed and access by multiple parties in one location. This eliminates delays due to miscommunications or a lack of documentation.
VDRs are beneficial for many other business needs as well as for preparing portfolio companies for an IPO or fundraising which requires an organization to share confidential financial documentation with a third party. These tools are extremely convenient to investors because they organize documents into logical subfolders that make it easier to navigate and grant access rights with just a click.
A virtual data room is an excellent way to share confidential intellectual property in the life sciences industry to potential investors and partners. With the ability to track document activity in granular detail it is possible to track who has viewed what documents. VDR allows users to track exactly who has viewed what documents and for how long. This information can be helpful in determining whether a plan is sufficiently explored and generating interest among potential investors. It can also aid in avoiding the risk of divulging confidential information to wrong people.