A virtual data room, also known as a VDR simplifies collaboration, cuts costs, streamlines organization, and accelerates due diligence and negotiations in strategic transactions. Online data rooms help companies to manage multiple deals at the same time by giving stakeholders digital access all documents pertaining to M&A due diligence, post-merger integration, and other M&A-related processes.
Most often, VDRs are used to assist in the closing of financial transactions. A venture capitalist, for example, will have to look over the corporate documents and contracts of a start-up before closing an investment. This process of completing due diligence requires an efficient and secure storage space and a platform that allows sharing of these documents.
Mergers and acquisitions (M&A) are other examples of the need for secure document storage and shared document management. Similar to this, companies in the life science industry often combine or join forces with one another and raise funds, which also require large amounts of document exchanges as well as the protection of intellectual property.
Using an online data room to raise funds eliminates the hassle of physically exchanging hard copies. It also guarantees that sensitive information isn’t vulnerable to hackers and other unwanted third parties. A VC can also keep track of how many times a document has been viewed and how long. This enables them to examine the process and make better decisions on future investments. Digify adds dynamic watermarks to files, which display recipients’ email and IP addresses, which deter the use of unauthorized software while improving traceability.