Corporate virtual data is data that businesses share with other parties in a safe online environment. The documents usually contain highly sensitive business-critical data that is of significant value to the organization or company sharing it. VDRs are commonly used during M&A measures such as due diligence, fundraising, and other events of the organization.
Life Sciences companies, such as biotech and pharmaceutical companies have specific requirements for their online documents. They require a platform that is HIPAA secure and FDA approved (business associates) and able to securely share documents between portfolio companies and auditors. VDRs give these companies an encrypted and secure system that permits them to monitor document downloads and access. Setting time-limits on access is an excellent way to protect the privacy of this important area.
Due Diligence
During M&A activities it is normal to have to divulge large amounts of confidential information to potential buyers. To streamline the process it is crucial to have a platform which is simple to use and secure. VDRs facilitate this and help to expedite the process of closing the transaction.
Fundraising
Startups and other companies that seek growth need to often disclose confidential information to investors to secure funding. This can be a long process that requires sorting through thousands of documents. Virtual data rooms allow investors from around the world to review this documentation easily, ensuring that the process is effective and accurate. This can also increase the competition between bidders, and may even boost the value of a business.
