A virtual data room for companies is an online platform that allows secure sharing of confidential documents and files. Users have access to files from any location, anytime with an internet connection. It also offers enhanced security, reducing the possibility of information theft or leakage. It is used in a variety of business transactions and projects, including mergers and acquisitions, fundraising, and private placement.
In the past, data rooms were used to analyse and review large volumes of documents during due diligence. Prospective buyers would schedule time to go through the documents in a secure, monitored central location. In a virtual dataroom, documents and information are displayed simultaneously on the screen of the user, allowing to speed up and make for an efficient process.
A VDR can help startups in the life sciences facilitate the exchange of sensitive documents with investors. A VDR can be used to reduce the amount of paperwork, including clinical trial results, HIPAA compliance, licensing IP, and storing patient files.
During fundraising, virtual data rooms provide leadership teams with a platform to share sensitive documents and other data with potential investors without jeopardizing compliance with the law or privacy. The VDR’s permissions system is granular. allows you to control who has access to the documents and folders, how long they can browse and use them and when their access will end. VDRs that have integrated tools for collaboration, like video, chat, voice and remote meetings, can facilitate communication between colleagues.