A virtual data room (VDR) is an extremely secure platform for sharing sensitive documents that have granular security and customizable access rights. In contrast to basic storage solutions for data that typically allow only viewing and downloading but VDRs offer more than just downloading and viewing. VDR can also provide search capabilities, easy collaboration between multiple parties, and the ability customize access privileges for every user.

During M&A deals, the due diligence process can require a lot of information that must be reviewed by multiple parties. This can result in lengthy and drawn-out agreements, or even the end of the deal when the documentation isn’t complete and prepared properly. A VDR is a central place for all relevant information to be shared and reviewed by several parties, thereby eliminating delays caused by miscommunication, or the absence of documentation.

VDRs are useful for many different business reasons too for preparing portfolio companies for an IPO or fundraising, which requires the organization to share financial records that are confidential with third-party investors. They are extremely useful for investors as they arrange documents into logical subfolders to facilitate navigation, and grant access rights in a single click.

A virtual data room is a great way to share confidential intellectual property in the life sciences industry to potential investors and partners. With granular document activity tracking and Look At This granular document activity tracking, a VDR lets users know exactly who has viewed which documents and for how long. This information is useful for making sure that a project has been thoroughly researched, which can generate interest among potential investors and making sure that you do not divulge sensitive information to the wrong people.