A virtual data room (VDR) is an encrypted platform for sharing sensitive documents with granular security and a range of customizable access permissions. A VDR is more advanced than basic storage solutions which usually only allow viewing and downloading. It also permits an easy collaboration between different parties and allows for customization of access privileges.

During M&A deals due diligence may require a lot of data to be reviewed by various parties. This could lead to lengthy and drawn-out deals, or stop the deal entirely when the documentation isn’t comprehensive and properly prepared. A VDR provides a centralized location to store all the relevant information to be shared and reviewed by several parties, thereby eliminating delays caused by miscommunication, or the absence of https://proportionaltax.com/sales-tax-or-why-there-is-no-vat-in-the-usa/ documentation.

VDRs can be used for a range of reasons, such as helping prepare portfolio companies to go public or for fundraising where the organization needs to share confidential financial documents with third parties. The ability to arrange documents into logical folders that facilitate navigation and grant access rights with just one click make these tools very useful for investors.

For the life science industry, a virtual data room is the ideal solution to share confidential intellectual property with potential partners and investors. With granular document activity tracking it is possible to track who has viewed what documents. VDR allows users to track exactly who has viewed what documents and for the length of time. This data is helpful for making sure that a project has been thoroughly researched, which can generate interest from investors who are interested in making sure that you do not divulge confidential information to the wrong individuals.