Corporate virtual data refers to information that businesses share with other parties in a secure online environment. Documentation usually contains highly sensitive, business-critical information that is of great value to the company or company sharing it. VDRs are used during M&A, due diligence fundraising and other events.
Life Sciences companies, such as pharmaceutical and biotech firms, have specific requirements for their online documents. They need a platform which is HIPAA compliant and FDA approved (business associates) that allows them to securely share documents among auditing firms and portfolio companies. VDRs provide these businesses with an encrypted, secure pipeline that permits the recording of document access and downloads. The ability to limit access to certain times can help protect your privacy in this important area.
Due Diligence
During M&A activities, it is common to require disclosure of large volumes of confidential data to potential buyers. To make the process easier it is crucial to have a platform which is easy to use and secure. VDRs can help facilitate this, and make it easier for the process of completing the transaction.
Fundraising
Startups and other companies seeking growth must frequently provide confidential information to investors to secure funding. This can be a lengthy process that requires sifting through thousands of documents. Virtual data rooms permit investors from around the globe to look over the documents quickly, ensuring that the process is effective and accurate. This can also increase bidding wars between bidders and may even increase the cost of a company.