top data room

A virtual dataroom (VDR) provides the security of sharing sensitive documents. It offers granular security with customizable access permissions. When compared to rudimentary data storage solutions that typically provide only downloading and viewing the files, a VDR can also offer search functionality, easy collaboration between multiple parties, and the ability alter access rights for every user.

During M&A deals due diligence can require a great deal of information to be reviewed by various parties. This can lead to long drawn-out, lengthy deals or kill the deal altogether when the documentation isn’t comprehensive and properly prepared. A VDR permits all relevant data to be shared, viewed and access by multiple parties from one location. This can reduce delays caused by miscommunication or lack of documentation.

VDRs are useful for a number of different business reasons too as for preparing portfolio companies for an IPO or fundraising which requires an organization to share financial records that are confidential with third-party investors. The ability to arrange documents into logical folders for better navigation and also grant access rights with a single click makes these tools practical for investors.

For the life science industry, VDRs are the perfect solution to share confidential intellectual property with potential partners and investors. A VDR’s detailed monitoring of document activity enables users to identify who has seen what documents and how long. This data is helpful for making sure that a project has been thoroughly explored, thus generating interest among potential investors and keeping out the possibility of divulging sensitive information to the wrong people.