A virtual data room, or VDR, is a secure way of sharing documents online. It lets users collaborate on projects, look over documents and make requests in real-time. These platforms are commonly used for M&A capital raises, strategic reviews, audits, and tenders.
VDRs allow companies to share sensitive and confidential information with third-party parties, like investors or clients, in a controlled environment. These platforms can also be used for managing projects and collaboration in business. They are highly customizable. They offer features such as granular document permissions as well as search capabilities and an intuitive interface that allows users to upload files from any device or location.
Private equity companies and funds use VDRs to communicate portfolio information as well as tax information and documents related to funds in an organized and transparent manner with interested investors. They also have the ability to collaborate with third parties and access the platform 24/7.
VDRs are used by life sciences companies to share their detailed R&D documents with potential investors. This helps them evaluate the level of interest and engagement. They can also upload licensing IP as well as patient data and clinical trial results to give potential buyers an overview of their 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 look over and comment on the data using the Q&A feature of the platform, and request specific documents from buyers in large quantities. They can also monitor the progress of due diligence and other responsibilities by using a dashboard that gives them real-time updates on their data room usage.