A virtual dataroom (VDR) provides the security of sharing sensitive documents. It provides granular security with customizable access permissions. In contrast to basic data storage solutions that usually allow only viewing and downloading, VDRs can offer more than just downloading and browsing. VDR can also provide search visit their website functionality and easy collaboration between several parties, and the ability set access privileges for every user.

Due diligence can be a lengthy process, requiring multiple parties to look over a vast amount of information. It can cause long and drawn out deals, or even the loss of the deal in the event that the documentation isn’t complete and prepared properly. A VDR is a central place for all relevant information to be shared and reviewed by various parties, thereby avoiding delays caused by miscommunication or missing documentation.

VDRs can be used for many different business reasons too for preparing portfolio companies for an IPO or fundraising which requires the business to share confidential financial information with third parties. The ability to organize documents into logical folders for better navigation and to grant access rights at a single click make these tools very practical for investors.

A virtual data room is a great method to share confidential intellectual property in the life sciences industry to potential investors and partners. The VDR’s precise tracking of document activity permits users to know who has viewed which documents and how long. This data is helpful for assessing if a project has been sufficiently explored, generating curiosity among investors looking to invest and keeping out the possibility of divulging sensitive information to the wrong people.