The Benefits of an Online Data Room

A virtual data room (VDR) is an encrypted platform for sharing sensitive documents that have granular security and a variety of access permissions that can be customized. As opposed to the basic storage options for data that generally provide only viewing and downloading, VDRs can offer more than just downloading and browsing. VDR can also offer search capabilities that allows for easy collaboration between different parties and the ability to alter access rights for every user.

In M&A deals due diligence can require a great deal of information to be viewed by many different parties. This can result in lengthy and drawn-out deals or even the death of the deal if the documentation is not complete and properly prepared. A VDR permits all relevant data to be shared, viewed and access by multiple parties from one central location. This eliminates delays caused by miscommunications or the absence of documentation.

VDRs are beneficial for many different business reasons too, such as preparing portfolio companies for an IPO or fundraising which requires the business to share financial records that are confidential with third parties. The ability to arrange documents into logical folders that facilitate navigation and also grant access rights with just one click make these tools very convenient for investors.

A virtual data room is a great method to share confidential intellectual property within the life sciences online data room field with potential investors and partners. With the ability to track document activity in granular detail and granular document activity tracking, a VDR allows users to know exactly who has looked at which documents and for the length of time. This information can be helpful to determine if a project is being sufficiently explored and generating interest among potential investors, and can help avoid the risk of revealing proprietary information to the wrong people.