Best Practices for Managing Sensitive Life Sciences Data During Capital Raises

Introduction
Challenges in Data Management During Capital Raises
Govern 365’s Solution
Conclusion

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Introduction

For life sciences companies, securing capital is essential to advancing research and development efforts, funding clinical trials, and bringing new products to market. Whether raising capital through venture funding, private equity, or strategic partnerships, the process requires companies to share detailed financial information, intellectual property, and clinical trial data with potential investors. However, sharing this sensitive data during a capital raise introduces significant risk.

In an industry where data security and regulatory compliance are paramount, life sciences companies must take steps to protect their sensitive information during the capital raise process. This blog will explore best practices for managing sensitive data during capital raises and how Govern 365 can help companies strike the right balance between transparency and security.

Challenges in Data Management During Capital Raises

1. Protecting Intellectual Property (IP):

Intellectual property is often a life sciences company’s most valuable asset. During a capital raise, potential investors will want to review the company’s IP portfolio, including patents, research data, and proprietary technologies. However, sharing IP with external parties introduces the risk of theft or unauthorized use. Companies need to ensure that their IP remains protected while still providing investors with enough information to evaluate the company’s value.

2. Managing Financial Transparency

Investors will also require access to detailed financial information, including revenue projections, funding needs, and cost structures. While transparency is necessary to secure funding, companies must also protect their financial data from unauthorized access or misuse. Sensitive financial documents, such as pitch decks and financial models, should be shared securely, with tight control over who can view or download them.

3. Ensuring Compliance with Regulatory Requirements

Life sciences companies are subject to strict regulatory requirements, particularly when handling patient data or clinical trial results. During a capital raise, companies may need to share clinical data with investors to demonstrate the effectiveness of their products. Ensuring that this data is shared in compliance with regulations such as HIPAA or GDPR is critical to avoiding legal and reputational risks.

Govern 365’s Solution: How We Protect Sensitive Data During Capital Raises

Govern 365’s secure data room solution is designed to help life sciences companies manage and protect sensitive data during capital raises, providing the tools and features needed to ensure both transparency and security.

1. Role-Based Access Controls

Govern 365 allows life sciences companies to implement role-based access controls, ensuring that only authorized investors can view or download sensitive documents. These controls allow companies to limit access to specific documents based on the investor’s role or stage in the funding process, ensuring that the right information is shared with the right people at the right time.

2. Download Restrictions and Document Expiry

To further protect sensitive data, Govern 365 offers download restrictions and document expiry features. This ensures that documents cannot be downloaded and stored locally on investors’ devices, reducing the risk of unauthorized sharing. Additionally, companies can set documents to expire after a certain period, automatically revoking access once the capital raise is complete.

3. Secure Collaboration Tools

Govern 365 enables secure, real-time collaboration between life sciences companies and investors. Investors can review pitch decks, financial models, and clinical trial data directly within the platform, leave comments, and request additional information—all within a secure, controlled environment. This eliminates the need for external email chains or unsecured file sharing, ensuring that all sensitive data remains protected.

4. Audit Trails and Transparency

Govern 365’s audit trail feature provides full transparency into who has accessed, viewed, or downloaded documents during the capital raise process. This allows companies to track investor engagement and ensures that there is a clear record of all interactions with sensitive data. In the event of a data breach or dispute, these audit trails provide a critical layer of accountability.

Conclusion

Managing sensitive data during a capital raise is a delicate balance between transparency and security. Life sciences companies must provide potential investors with enough information to secure funding while ensuring that intellectual property, financial data, and clinical trial results are protected. Govern 365 provides the secure data room solution that life sciences companies need to navigate the capital raise process with confidence, offering role-based access controls, download restrictions, secure collaboration tools, and audit trails to protect sensitive data at every stage.