VDRs (virtual data rooms) are software platforms used for storing and sharing confidential documentation in a secure environment. They are frequently employed in due diligence processes, but they can also be used in different scenarios. The majority of the instances involve mergers or acquisitions, which include the provision and evaluation of large quantities of confidential data to all stakeholders.
When choosing a VDR for your project, choose one with the ability to set up granular document permissions (not only print/view levels) to allow you to specify who is allowed to do what. You may also want to consider VDR features such as dynamic watermarking, two-factor authentication, and an extensive audit trail for digital rights management.
Processes of investment banking like IPOs and capital raisings M&A demand large-scale document sharing which a virtual data room is well-suited for. These spaces allow collaboration and communication among a wide range of stakeholders, including those involved in due diligence, contract negotiation and more. For biotech companies in particular, a thoughtfully constructed VDR helps reduce the risk for business and puts time and energy on turning promising science into approved medicines that improve the lives of patients.
