Virtual data rooms, also known as VDRs, ease collaboration to reduce costs and accelerate due diligence and negotiation in strategic transactions. Online data rooms help companies to manage multiple deals at once by providing stakeholders with digital access to all documents related to M&A due diligence, post-merger integration and other M&A-related processes.

Most imp source of the time, VDRs are used to facilitate the completion of a financial transaction. For instance the venture capital company must review all corporate documentation and contracts of a start-up prior to closing an investment deal. Due diligence is a procedure that requires an efficient and secure storage space as well as a platform to share documents.

Mergers and Acquisitions (M&As) are a further example of the need for secure document management and storage. Similarly, companies in the life sciences industry regularly join or collaborate with each other and raise funds, which also need a lot of document exchanges and the protection of intellectual property.

Utilizing an online data space for fundraising removes the hassle of physically exchanging hard copies. It also guarantees that sensitive information is not exposed to potential hackers and other undesirable third parties. Furthermore, a VC can track the number of times a document was viewed and for the length of time. This allows him or her to review the processes and make better decisions on future investments. Digify adds dynamic watermarks to files that display recipients’ email addresses and IP addresses, which discourages unauthorised use and increases traceability.