Virtual data rooms (VDRs) are software platforms that allow you to store and share confidential documents in a safe environment. They are typically utilized in due diligence, but they can be utilized in a variety of different situations. Most use cases involve a merger or acquisition that requires the disclosure and review of significant amounts of see page confidential information to the stakeholders to have access.

When selecting a VDR for your project, choose one that has granular document permission settings (not just view/print/download levels) so you can control who is allowed to do what. You might consider looking into VDR features like dynamic watermarking, two-factor authentication, or a complete audit track for digital rights management.

Investment banking processes like IPOs, capital raising and M&A demand large-scale document sharing which a virtual data room is ideal for. These environments facilitate communication and collaboration across a wide range of parties for due diligence, contract negotiations, and more. Particularly for biotech companies, a thoughtfully constructed VDR helps derisk the business and focus efforts and time on turning promising research into approved medications that improve the lives of patients.