A virtual data room (VDR) is an extremely secure platform for sharing sensitive documents that have granular security and customizable access permissions. As opposed to the basic data storage solutions that typically provide only downloading and viewing, VDRs can offer more than just downloading and browsing. VDR can also offer search capabilities as well as easy collaboration between multiple parties, and the ability alter access rights for each user.
Due diligence can be a lengthy process, requiring many parties to go through a large amount of information. This can lead to long, drawn-out deals or even stop the deal entirely in the event that the documentation isn’t completed and properly prepared. A VDR offers a central repository for all the relevant data to be shared and viewed by multiple parties, which eliminates delays caused by miscommunication or lack of documentation.
VDRs can be useful for many different business reasons too for preparing portfolio companies for an IPO or fundraising which requires the business to share confidential financial documentation with third parties. The ability to arrange documents into logical folders for easier navigation and to grant access rights with a single click makes these softwares extremely practical for investors.
For the life science industry, the virtual data room is the ideal solution to share confidential intellectual property with investors and potential partners. With the help of granular document activity tracking and granular document activity tracking, a VDR allows users to know exactly who has viewed what documents and for the length of time. This information can be useful in knowing if a project’s been thoroughly researched, generating interest among potential investors and making sure that you do not divulge secret information to the wrong people.