A virtual data room (VDR) is a secure platform for sharing sensitive documents, with granular security and a variety of access permissions that can be customized. Compared to rudimentary storage options for data that generally allow only viewing and downloading but a VDR can also provide search capabilities and easy collaboration between several parties, and the capability to set access privileges for every user.
During M&A deals due diligence may require a lot of information that must be reviewed by multiple parties. This can lead to long drawn-out and lengthy deals or stop the deal entirely if the documentation isn’t complete and properly prepared. A VDR permits all relevant data to be shared, viewed and access by multiple parties in one location. This can reduce delays due to miscommunications or missing documentation.
VDRs can be utilized for a variety of other business needs, such as preparing portfolio companies for public listing or for fundraising, when the company is required to share confidential financial documents with third parties. The ability to arrange documents into logical folders for easier navigation and provide access rights in a single click makes these official source softwares extremely practical for investors.
For the life science industry, VDRs are an ideal way to share confidential intellectual property with potential investors and partners. A VDR’s granular tracking of document activity permits users to determine who has seen what documents and for how long. This information can be useful in assessing if a project has been sufficiently explored, generating interest from potential investors and making sure that you do not divulge sensitive information to the wrong individuals.