A virtual dataroom (VDR) offers a secure platform to share sensitive documents. It provides high-security with customizable access rights. 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 provide search capabilities and easy collaboration between several parties, and the ability alter access rights for every user.
Due diligence can be a long process, requiring many parties to review a large amount of information. 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 allows all relevant data to be shared, reviewed and access by multiple parties in one central location. This can reduce delays due to miscommunications or missing documentation.
VDRs can be useful for many different business reasons too for preparing portfolio companies for an IPO or fundraising that requires the company to share confidential financial documentation with third-party investors. The ability to organize documents into logical folders to facilitate navigation and grant access rights at a single click make these tools very convenient for investors.
A virtual data room is a great method to share confidential intellectual property in the life sciences field with potential investors and partners. A VDR’s granular tracking of document activity permits users to determine who has viewed what documents and how long. This information can be helpful in determining if a particular project is sufficiently explored and generating interest among potential investors. It can also help avoid the risk of revealing proprietary information to the wrong people.
Add Your Comment