Virtual data rooms facilitate the safe and easy sharing of information between different parties during due diligence for M&A and partnership fundraising, asset sales. Businesses can control access to documents and access permissions, set granular access restrictions and monitor the activities to see who is able to access their information. They can also include dynamic watermarks that show a recipient’s email address or IP address to prevent the sharing of data without authorization and improve the traceability.
During M&A due diligence, it is required the presentation and review of large volumes of documents. Potential buyers may need to view the information outside of the corporate headquarters or offices. This can lead to logistical difficulties. A VDR allows interested parties to access the documents online, without the need to travel, stay in hotels, or consume meals. A virtual data room could also reduce the risk of confidential documents being lost or stolen.
VDRs are used widely in the life sciences www.internationaldataroom.com/what-are-the-benefits-of-using-a-virtual-data-room/ industry for storage of sensitive and confidential information. This includes clinical trial results, HIPAA compliance and licensing information. A VDR allows life science companies to store and share the information with partners, potential investors and regulators in a safe and secure environment.
The process of raising venture capital may require a huge amount of documentation that must be made available to potential investors. Utilizing VDRs VDR can streamline the process, and ensure that all of the essential information is included in the pitch deck. It also makes it easier to monitor who is looking at the content and how long they are spending doing so, allowing businesses to assess the interest levels and follow up appropriately.