A corporate virtual dataroom is a digital platform that allows for secure sharing of sensitive data and documents. It allows users to access their files at any time and from anywhere with an internet connection. It also provides increased security, which minimizes the possibility of information theft or leakage. It can be used for a variety transactions, such as mergers and acquisitions, fundraising and private placement.
Traditionally physical data rooms were utilized in M&As to review and analyze large volumes of documents during due diligence. Prospective buyers would set aside time to look over the documentation in an unsecure centrally monitored location. In a virtual dataroom documents and other data are displayed simultaneously on the screen of the user, which allows for a more rapid and efficient process.
For startups operating in the life sciences, the use of a VDR can simplify the transfer of sensitive documents with investors. A VDR can be used to reduce the amount of paperwork, including clinical trials, HIPAA compliance, licensing IP, and the storage of patient files.
During fundraises Virtual data rooms provide executives with a platform to share confidential documents and data with potential investors without jeopardizing compliance with the law or privacy. The VDR’s permissions system lets you to decide who has access to what folders and documents. You can also regulate how long users can view or access the files and when they expire. VDRs that have integrated tools data rooms for board communications for collaboration, such as chat, voice, video and remote meetings, are able to improve communication between colleagues.