A virtual data room (VDR) is an efficient and secure way to share sensitive documents that have granular security and a range of customizable access permissions. A VDR is more advanced than basic storage solutions which typically allow only viewing and downloading. It also permits an easy collaboration between different parties, and allows for the visit their website customization of access privileges.

In M&A deals due diligence can require a lot of data to be reviewed by many different parties. This can lead to long, drawn-out deals or even make the deal unworkable if the documentation isn’t complete and properly prepared. A VDR offers a central repository to store all the relevant information to be reviewed and shared by multiple parties, which eliminates delays caused by miscommunication or missing documentation.

VDRs are beneficial for many other business purposes as well in the preparation of portfolio companies for an IPO or fundraising which requires the business to share financial records that are confidential with third party. The ability to organize documents into logical folders for easier navigation and provide access rights at a single click make these tools very convenient for investors.

For the life science industry, VDRs are the perfect solution to share confidential intellectual property with potential partners and investors. With granular document activity tracking, a VDR allows users to know exactly who has looked at which documents and for how long. This data is helpful for assessing if a project has been thoroughly explored, thus generating interest from investors who are interested in keeping out the possibility of divulging secret information to the wrong individuals.