The Benefits of an Online Data Room

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A virtual data room (VDR) is an efficient and secure way to share sensitive documents with granular security and a variety of access permissions that can be customized. Compared to rudimentary storage solutions for data that typically allow only viewing and downloading, the VDR can also offer search capabilities that allows for easy collaboration between different parties, and the ability set access privileges for every user.

Due diligence can be a long process, requiring multiple parties to scrutinize a huge amount of information. This can result in long drawn-out, lengthy deals or stop the deal entirely when the documentation isn't comprehensive and properly prepared. A VDR lets all relevant information to be shared, reviewed and accessed by multiple parties in one central location. This helps avoid delays caused by miscommunications or the absence of documentation.

VDRs can be used for a number of different business reasons too as for preparing portfolio companies for an IPO or fundraising that requires the company to share confidential financial documents with third-party investors. These tools are extremely convenient to investors because they organize documents into logical subfolders for easier navigation, and also grant access rights with just a click.

For the life science industry, the virtual data room is the perfect solution for sharing confidential intellectual property with potential partners and investors. A VDR's detailed tracking of document activity permits users to identify who has viewed which documents and how long. This information can be useful to determine if a project is adequately explored and inciting interest among potential investors. It could also assist in avoiding revealing proprietary information to the wrong people.