Virtual data rooms (VDRs) are software platforms that allow you to store and share confidential documents in a safe environment. These are typically used during due diligence processes but they can be utilized in a variety of different scenarios. Most of the use cases involve mergers and acquisitions, which include the provision and evaluation of large quantities of confidential data for stakeholders.
When choosing the right VDR for your project, choose one that has granular document permission settings (not only print/view levels) so you can control who is able to do what. You might consider VDR features like dynamic watermarking and two-factor authentication, or a complete audit track for digital rights management.
Virtual data rooms are great for investment banking operations such as IPOs capital-raising, IPOs, and M&A. They require massive document sharing. These environments facilitate communication and collaboration among a variety of stakeholders for due diligence, contract negotiations and more. Particularly for biotech companies, a thoughtfully constructed VDR helps to reduce risk for the business and puts efforts and time on turning promising research into approved medications that improve the lives of patients.