A virtual data room, or VDR is a secure method of sharing documents online. It lets users collaborate on projects, read documents and submit requests in real-time. These platforms are utilized to conduct capital raises, M&As or strategic reviews. They can also be used for conducting audits, tenders, and audits.
VDRs offer a way for companies to share sensitive and confidential data with third parties, such as clients or investors in a controlled and secure environment. They are also helpful for business collaboration and project management, and are highly customizable. They have features like the ability to grant document permissions in a granular manner as well as search capabilities and an intuitive interface that allows users to upload files from any device or location.
Private equity firms and funds use VDRs to share portfolio information, tax information and documents for funds in an organized and transparent manner with investors who are interested. They can also access the platform 24 hours a day and collaborate with third-party partners in due diligence processes.
VDRs are used by life sciences companies to provide detailed R&D documents with potential investors. This helps them assess the level of interest and engagement. They can also upload results from clinical trials as well as licensing IP and patient files to provide potential buyers with an entire picture of the business.
Investment bankers rely heavily on VDRs to share large amounts of documents in investments banking processes like IPOs and Capital Raisings. They can read and make comments on the documents using the platform’s Q&A feature, and request specific documents from buyers in bulk. They can also monitor the progress of due diligence and other projects by using a dashboard which gives them real-time information on their data room usage.