Virtual datarooms, or VDR provides a secure online platform to share documents. It allows users to collaborate on projects, review documents and submit requests in real time. These platforms are employed to conduct capital raises, M&As or strategic reviews. They can also be used for conducting audits, tenders, and audits.
VDRs allow businesses to share sensitive data in a controlled manner with third parties, like investors or clients. These platforms can also be used to manage projects and collaboration in business. They are highly customizable. These platforms come with features like granular document access permissions, search capabilities and an easy-to-use interface which lets users upload files from anywhere or on any device.
Private equity funds and private equity firms utilize VDRs to share portfolio information including tax information, documents related to funds in an organized and transparent manner with interested investors. They can also access the platform 24/7 and collaborate with third parties on due diligence procedures.
VDRs are used by life sciences companies to share their detailed R&D documents with potential investors. This helps them gauge the level of interest and engagement. They can also upload clinical trial results as well as licensing IP and patient data to provide potential buyers with an overall view of the business.
Investment bankers depend on VDRs to share huge volumes of documentation during the process of investment banking, such as IPOs and capital raises. They can also comment on the information via the Q&A feature of the platform, and request specific documents from buyers in bulk. They can also track the progress of due diligence and other responsibilities by using a dashboard that gives them real-time information on their data room usage.