A virtual data room, or VDR streamlines collaboration, reduces costs, streamlines organization, and speeds due diligence and negotiations in strategic transactions. By giving stakeholders digital access to all documents involved in M&A due diligence and post-merger integration, online data rooms enable companies to manage more deals at once in a shorter amount of time.
Most of the time, VDRs are used to assist in the closing of financial transactions. A venture capitalist, for example, will need to review the corporate documents and contracts of a start-up prior to closing an investment. This procedure of conducting due diligence requires a fast and secure storage space and an online platform that permits sharing of these documents.
Mergers and Acquisitions (M&As) are a different example of the need for secure document management and storage. In the life sciences industry, companies regularly mix, partner and raise money which require lots of document exchange and the protection of intellectual property.
By using an online data room to raise funds, you can save the hassle of sharing hard copies. Also, you can ensure that the information you are storing is not be available to hackers or other unwelcome third parties. Additionally, a VC can monitor how many times a specific document was looked at and for the length of time. This allows him or her to review the processes and make better decisions regarding future investments. Digify adds dynamic watermarks on files that show recipients’ email addresses as well as IP addresses, which prevents unauthorized use while increasing traceability.
