A virtual dataroom for companies is a digital platform which allows secure sharing of confidential documents and data. Users can access their files from anywhere anytime, with an internet connection. It provides greater security, which minimizes the risk of data leakage and theft. It is used in a wide range of business transactions and projects, including mergers and acquisitions, fundraising, as well as private placement.
In the past data rooms were utilized for the purpose of reviewing and analysing large volumes of documents during due diligence. Prospective buyers would schedule the time to review documents in a secured, monitored central location. In a virtual dataroom documents and data are displayed simultaneously on the screen of the user, which allows for a quicker and more efficient process.
A VDR can assist startups in the field of life sciences to streamline the exchange of sensitive documents with investors. A VDR can be used to eliminate mountains of paperwork, ranging from clinical trials, HIPAA compliance, licensing IP, and the storage of patient files.
During fundraises, virtual data rooms provide leadership teams with a platform to effectively share confidential documents and data with prospective investors without compromising the compliance of the company or privacy. The VDR’s permissions management system allows you to determine who is able to access what folders and documents. You can also regulate the length of time users can view or access the files and when they expire. VDRs with integrated tools for collaboration like chat, voice and video calls, and remote meetings facilitate more efficient communication with collaborators.