Virtual datarooms, or VDR, provides an online platform that is secure for sharing documents. Users can collaborate on projects, review 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 are a way for companies to share sensitive and confidential data with third-party parties, like investors or clients in a controlled and secure environment. These platforms are also beneficial for collaboration in the workplace and project management, and are highly customizable. They offer features such as specific document permissions, search functionality and an intuitive interface that lets users upload files from any device or location.
Private equity companies and funds make use of VDRs to share portfolio information as well as tax information and documents for funds in a professional and transparent way with interested investors. They can also access the platform 24/7 and collaborate with other third parties on due diligence procedures.
VDRs are used by life science companies to share detailed R&D documents with potential investors. This allows them to assess the level of interest and engagement. They can also upload results from clinical trials, licensing IP and patient data to give prospective buyers an entire picture of the business.
Investment bankers rely heavily on VDRs for sharing large amounts of documents involved in investment banking processes such as IPOs and Capital Raisings. They can comment on the data using the Q&A function on the platform and request specific documentation from buyers in large quantities. A dashboard provides them with a real-time information about their data room use, which allows them to keep track of the progress of projects such as due diligence.