Your company may be required to review sensitive data that comes from an outside company. These scenarios include business acquisitions and fundraising rounds and mergers, regulatory filings, and other mission-critical procedures where sensitive information is required to be shared. In certain instances you can utilize generic tools for sharing files such as Google Drive or email. However, it is important to utilize a VDR to ensure that your data remains secure and your team members are able to effectively.
VDRs offer a secure repository where authorized users can interact with documents and data files using a web browser or mobile application. These platforms provide advanced software features such as document indexing, full-text search along with favorites, infinite scrolling and auto-renumbering. This enables project teams and third parties that collaborate to write proposals easily and provide transparency with activity logs which monitor all user actions in the VDR.
While VDRs were initially designed for M&A transactions They are now employed by various industries that need to share sensitive data with stakeholders outside. Investment bankers utilize VDRs to share contract and related information with prospective buyers and investors in a secure online setting. Venture capitalists and private equity companies frequently utilize a VDR to work with limited partners, auditors and portfolio companies on complicated agreements and regulatory filings. And, pharmaceutical and biotech companies depend on the VDR to share intellectual property and clinical trial data with third parties.
POSTED BY
John Avery
13th October 2024
