Virtual data rooms allow for easy and secure sharing of data between parties involved in due diligence processes for M&A, partnering, fundraising and asset sales. Companies can control document access by setting granular permissions and keep track of activity to gain insight into who is viewing their data. They can also add dynamic watersmarks that display the IP address of the user or email address to deter sharing that is not authorized.

During M&A, due diligence requires the disclosure and examination of huge volumes of documents. Often, prospective buyers will need to view the documents at locations outside of the office or headquarters of the company. This can create logistical difficulties. However VDRs can be a boon for logistics. VDR can permit individuals interested in the information online without the need for travel, accommodation and meals. A virtual data room could also reduce the risk of confidential documents being lost or stolen.

In the life sciences industry, VDRs are commonly utilized to store sensitive and confidential data. This includes clinical trial results, HIPAA compliance and licensing information. A VDR allows companies in the life sciences to share information with partners, potential regulators and investors.

The process of raising venture capital involves lots of documentation that must be shared with investors. Utilizing VDRs VDR can streamline the process, and make sure that all of the essential details are included in the pitch deck. It can also be easier to determine what material is being reviewed and for how long, allowing companies to determine the level of interest and follow-up accordingly.