Virtual data rooms, also known as VDRs, ease collaboration, reduce costs, and accelerate due diligence and negotiation in strategic transactions. Through providing stakeholders with access to all the documents that are involved in M&A due diligence and post-merger integration, these online data rooms help companies manage more deals at once in less time.

Most often, VDRs are used to facilitate the completion of a financial transaction. A venture capital company is an example. A venture capital firm will need to review the corporate documents and contracts of a new company prior to closing an investment. This process of completing due diligence requires efficient and secure storage space, as well as an online platform that permits sharing of such documents.

Mergers and acquisitions (M&A) are another instance of the need for secure document storage and shared document management. In the same way, companies in life science industry regularly join or collaborate with one another and raise funds, which also require copious amounts of document exchanges and protection of intellectual property.

If you make use of an online data room to raise funds, you will save the hassle of sharing hard copies. It also guarantees that your private information will not be exposed to hackers or other unwanted third parties. A VC can also track the number of times documents have been viewed and the length of time. This lets him or her examine the processes in order to make better decisions about future investments. Digify includes dynamic watermarks on documents that show the email addresses of recipients and IP addresses. This discourages unauthorized usage while increasing traceability.