A virtual dataroom (VDR) offers the security of sharing sensitive documents. It provides granular security with customizable access permissions. In contrast to basic data storage solutions that usually offer only viewing and downloading but a VDR can also provide search functionality and easy collaboration between several parties and the ability to set access privileges for each user.
Due diligence can be a lengthy process that requires many parties to scrutinize a huge amount of information. It can cause long and drawn-out deals or even the demise of the deal in the event that the documents are not complete and properly prepared. A VDR permits all relevant data to be shared, reviewed and accessed by multiple parties in one central location. This can reduce delays due to miscommunications or a lack of documentation.
VDRs are useful for a number of other business needs as well, such as preparing portfolio companies for an IPO or fundraising which requires the business to share financial records that are confidential with third party. The ability to arrange documents into logical folders for better navigation and grant access rights with just one click makes these softwares extremely convenient for investors.
For the life science industry, VDRs are an ideal way to share confidential intellectual property with investors and potential partners. The VDR’s precise monitoring of document activity enables users to track who has visited what documents and 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 secret information to the wrong people.