A virtual data room is an online repository that facilitates secure transfer of important company files with partners. Also known as a virtual data room or VDR this tool can assist businesses in reducing the amount of paper they have to move between offices, enabling them to save time and money while improving security of documents.
Virtual data rooms can be particularly beneficial in the investment banking process, such as IPOs, M&A and capital raising, where complex transactions require large amounts of information to be shared with third parties. They can make complicated due diligence simpler, speeding up the deal process and cutting costs.
They also make it easier for companies share documents in a secure environment with other businesses or investors as well as the general public. VDRs allow users to keep track of the activity of their users and identify who has access which documents, and they feature features such as watermarking and impaired printing that stop information from being stolen or distributed without permission.
The market for vdrs is expanding quickly, driven by increased M&A activity and regulatory changes, as well as the need for secure methods of transferring sensitive information from one place to another. They are especially popular with SMEs who create a substantial volume of confidential data. Life science companies rely on vdrs this article perform a variety of tasks. From sharing clinical trial results with labs outside of the company, to licensing IP, and even storing the patient’s data. They likewise rely on vdrs for fundraising events with potential supporters.