A virtual data room (VDR) is an extremely secure platform for sharing sensitive documents with granular security and customizable access permissions. Compared to rudimentary data storage solutions that typically provide only viewing and downloading the files, a VDR can also offer search functionality as well as easy collaboration between multiple parties, and the ability to set access privileges for every user.

Due diligence can be a long process that requires many parties to look over a vast amount of information. It could lead to lengthy and drawn out deals or even the loss of the deal in the event that the documentation isn’t complete and properly prepared. A VDR lets all relevant information to be shared, reviewed and access by multiple parties from one central location. This can reduce delays caused by miscommunications or the absence of documentation.

VDRs can be used for a variety of other business needs, such as preparing portfolio companies to go public or for fundraising where the organization needs to share confidential financial documents with third parties. These tools are very convenient for investors because they can organize documents into subfolders for easier navigation, and grant access rights with a single click.

For the life science industry, the virtual data room is an ideal way to share confidential intellectual property with investors and potential partners. With the help of granular document activity tracking it is possible to track who has viewed what documents. VDR allows users to track exactly who has seen which documents and for the length of time. This information can be useful in checking if a particular project has been sufficiently explored, generating interest among potential investors and avoid the risk of divulging confidential information to the wrong individuals.

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