A virtual data room (VDR) is a secure platform for sharing sensitive documents that have granular security and customizable access rights. A VDR is more advanced than standard storage solutions, that typically only allow viewing and downloading. It also allows easy collaboration among multiple official source parties and allows for customization of access privileges.
Due diligence can be a lengthy process that requires many parties to review a large amount of information. This could lead to lengthy, drawn-out deals or even make the deal unworkable when the documentation isn’t comprehensive and properly prepared. A VDR offers a central repository to store all the relevant information to be shared and viewed by multiple parties, which eliminates delays caused by miscommunication or lack of documentation.
VDRs can be utilized for a range of commercial purposes, including the preparation of portfolio companies for public listing or for fundraising, in which the company must share confidential financial documents with third parties. These tools are extremely convenient to investors because they organize documents into subfolders to facilitate navigation, and grant access rights with a single click.
For the life science industry, VDRs are the perfect solution for sharing confidential intellectual property with potential investors and partners. With the aid of document activity tracking that is granular it is possible to track who has viewed what documents. VDR lets users know exactly who has viewed which documents and for how long. This information can be useful in making sure that a project has been thoroughly explored, thus generating interest from potential investors and avoiding the risk of revealing confidential information to the wrong individuals.