Virtual data rooms allow the safe and easy sharing of information between different parties during due diligence for M&A, partnership fundraising, asset sales. Companies can manage access to documents by setting granular permissions and monitor activity to gain insight into who is viewing their data. They can also include dynamic watermarks that show a recipient’s email address or IP address to discourage unauthorized sharing and improve the traceability.
During M&A due diligence, it is required the furnishing and review of large volumes of documents. Most often, potential buyers will require access to these documents in locations that are not part of the company’s headquarters or offices. This can create significant logistical difficulties. However the benefits of a VDR can permit individuals interested in the information online without the need to transportation, accommodation or meals. A virtual data room could also reduce the risk of confidential documents being misplaced or stolen.
VDRs are widely used in the life sciences industry for storage of sensitive and proprietary information. This includes clinical https://internationaldataroom.com/ trial results, HIPAA compliance and licensing information. A VDR allows life science companies to store and share this information with potential partners, investors and regulators in a controlled and secure environment.
The process of raising venture capital can require a significant amount of documentation that must be handed out to potential investors. A VDR can simplify the process and ensure that all the required information is included in the pitch deck. It can also make it easier to keep track of who is consuming the content and how long they’re spending doing so which allows companies to assess the level of interest and follow up with the appropriate follow-up.