Corporate Virtual Data
Corporate virtual data refers to the information that companies share in a secure online environment. The documentation typically contains highly sensitive data for business that can be of great value to the company or organization sharing it. VDRs are commonly used in M&A due diligence fundraising, and other corporate events.
Life Sciences companies, such as pharmaceutical and biotech firms have specific requirements for their online documents. They require a platform that is HIPAA compliant and FDA approved (business associates) that allows them to securely share documents between portfolio companies and auditors. VDRs give these companies security and encryption that permits them to monitor the downloads of documents and to access. The ability to set access time limits helps protect privacy in this important area.
Due Diligence
In M&A the process, it is uncommon to have to reveal massive amounts of sensitive information to potential buyers. This requires a platform that is secure and user-friendly in order to speed up the process. VDRs can facilitate this and can speed up the process of completing the transaction.
Fundraising
Startups and other companies seeking growth must frequently provide confidential information to investors in order to secure funding. This can be a lengthy process that requires sifting through thousands of documents. Virtual data rooms permit investors from around the world to review the documents quickly, ensuring that the process is effective and accurate. This can also increase the amount of bidders competing and may even aid in increasing the value of an organization.