Virtual Data Rooms or VDRs are gaining favor over modern-type businesses. Mergers & acquisitions, due diligence, and other business transactions that were run in a physical room in the past were real challenges. But today’s VDRs can meet them with success.
How can your company profit from a VDR? Which VDR provider will offer you the best data rooms? Which of their features should you pay attention to? You do not need to read piles of volumetric articles to understand what a VDR is and which of the top VDR providers you should select. Follow this quick overview to go to the root of the matter.
What is VDR Software?
Data room software represents an integrated system of numerous instruments the main functions of which will be storing and sharing data as well as conducting transactions of all types in the online mode.
Do not confuse VDRs with similar but much more limited services such as DropBox or Open Drive. The simplest electronic data room will have more tools than any file sharing services or meeting & video conferencing software. The operations that can be run through a VDR include:
- due diligence;
- raising investments and venture capital;
- strategic partnership;
- litigations & legal audits;
- IPO – initial public offering;
- intellectual property management;
All these transactions require the highest level of security first of all. The best data room providers can ensure it as well as their products have enough capacity to make them quick and convenient.
Still do not get the difference between a virtual data room and similar services? Let us compare all means used to store and share data so that you understand the benefits of VDRs.
|Services||Set-Up & Operation Speed||Deal Security||Work Efficiency||Required Level of Control|
|Physical Deal Room||–||–||–||full|
|Email File Sharing||–||–||–||full|
|Cloud File Sharing||+||–||partial||considerable|
|Virtual Data Room||+||+||+||minimal|
Thus, you cannot expect better functionality from any other file-sharing or meeting software than that of most VDRs. Let us proceed to their key features.
VDRs’ Most Useful Features
When you keep a business, you know how valuable information is and how important it is to ensure its safety. Moreover, when the necessity to negotiate with third parties occurs, you would like to go through the whole process in the fastest way. To meet these requirements, the best data room providers offer the following VDR features:
Top VDR vendors utilize enterprise-standard soft fully certified according to the global regulations. This ensures an unprecedented security level for all data stored and shared via a VDR. For instance, storage cloud software of the ISO 27081 standard is employed in most VDRs. Modern methods of encryption and two-factor authentication are also applied.
Here, you can expect full adjustability since you can add and remove users and define how much they can actually access. One and the same document can be viewed in a different way by different users. For managing it, you have such options as the View-Only feature, Watermarking, and others.
This feature is also called Audit Logs. In fact, your online data room software will log all the user’s activities in your VDR. You can observe them right in the course or after the transaction. The benefits include the ability to tune up your VDR better.
When your VDR is too sophisticated and overloaded with instruments the purpose of which you cannot get, this might be a sign that you’d rather skip this provider. An easily manageable VDR is a guarantee of your successful interaction with your partners.
Free Trial Options
How would you know that the targeted VDR has enough tools and an easy-to-manage interface? You can only find out this with the help of free trials. And the best virtual data room providers can afford to offer them to you!
You would scarcely find a VDR without tutorials for newbies to data room services. However, full support must include more. The best vendor will offer you 365x24x7 support which means that you can rely upon the team at whatever time, during whatever transaction.
Who VDRs Are Designed For?
Practically all modern businesses may benefit from VDRs. However, these services are the most crucial for those that appreciate their sensitive data the most. These might be:
- Lawful firms
- Selling/Buying parties in M&A
- Companies that plan IPO
- Pharma & Life-Science companies
- Start-ups that require special management of their intellectual property
Rules of Selecting the Best VDR Vendor
To pick the right provider for data room due diligence, fundraising negotiations, or whatever, you should take no more than the following steps:
- Choose your perfect VDR bearing in mind its functions suitable for your company’s size and needs.
- Do not search for disproportionally cheap services. Nice VDR software will cost properly.
- Your ideal VDR provider offers Free Trial.
- Choose VDRs with full support options.
By applying these rules to your search, you are bound to succeed. You will make your choice even more refined when you go over expert reviews and customer feedback on the targeted provider.