Virtual data rooms in the US facilitate the secure and simple sharing of information between different parties during due diligence for M&A and partnership fundraising, asset sales. Companies can control access to documents and set permissions granularly and monitor activity to gain insights into who is viewing their data. They can also add dynamic watermarks which display a recipient’s email address or IP address to discourage sharing that is not authorized and improve traceability.
During M&A due diligence, due diligence involves the submission and review of a vast amount of documents. Potential buyers might need to look over the information outside of the corporate headquarters or offices. This can lead to logistical issues. A VDR allows interested parties to view the documents online, without the need to travel or stay in hotels or eat meals. A virtual data room can also reduce the chances of confidential documents being lost or stolen.
In the life sciences industry, VDRs can be utilized to store confidential and sensitive information. This includes information regarding clinical trials, HIPAA and licensing. A VDR allows companies working in the life sciences to share data with potential regulators, partners and investors.
Raising venture capital can involve lots of documentation that needs to be made available to investors. A VDR can make the process easier and ensure that all required details are included in the pitch deck. It can also be easier to determine which material is being viewed and for how long, allowing companies to determine the level of interest and follow-up accordingly.