Virtual data rooms (VDRs) have revolutionized the transaction process in today’s business environment. Businesses prefer virtual data rooms instead of physical data rooms for a variety of reasons, including instant 24/7/365 access from any location and any device with an internet connection, secure data management, and storage, as well as time and money savings for secret business deals. Plus, online deal rooms take away all the pitfalls and risks, reducing the possibility of a deal not going on as planned.
Data rooms are secure online meeting places for all parties involved in the negotiation of an agreement. Data rooms give users full control while performing online due diligence processes. These secure online data repositories also simplify the cooperation among all parties. VDRs have also evolved into a tool that helps users throughout the course of the entire deal process, and not just during the due diligence stage. Companies use virtual data rooms not only for mergers and acquisitions (M&A) but also for other deals such as loan syndication, private equity, and venture capital funding.
Data rooms are also used wide-range of industries, including:
While VDRs offer similar services, such as data storage security, data management, and data sharing, their functions may vary. The best online data rooms provide military-level security, multi-language support, full-text search, in-document linking, and a wide range of other advanced functions.
Online data rooms are popular among different business industries because they provide the following solutions to issues relating to corporate transactions:
The number of potential uses of secure data rooms is close to infinity. Firms that are in the legal, real estate, life science, biotech, and other industries use this data room software for different purposes. For you to get the hang of how businesses use the software, we collected the most popular uses of virtual data rooms:
Every M&A deal includes a due diligence process. This transaction is always accompanied by a large volume of confidential documents that require to be stored and protected with several security layers, which are available only in VDRs. Businesses cannot get this level of security from customer-centric solutions, such as Dropbox, Google Drive, Microsoft OneDrive, Box, or Hightail.
The bidders in the M&A deal have access to the information stored in the data room 24/7/365 with no limits as long as the seller’s side grants this access. On the seller’s side, it has transparency on user activity, documents, or buyer requests analytics, which allows the seller to grant users full control over the deal or its bottlenecks.
The process of setting up a virtual data room when getting ready to sell a business is a relatively simple four-step procedure:
After all digital documents are already collected, setting up a virtual data room for selling a business can take only 10 minutes or less. Virtual data software collaboration options and the capacity to update existing files on the fly also cut down negotiation time from several months to days.
Fundraising can last for weeks, months, and even years and engage many teams and individual professionals to review, comment, or update financial documents. That’s why an online data room that lets users share information quickly and safely cannot be done without a firm of any size, and big businesses especially raise money.
In addition, virtual data rooms features like a Q&A section and comments section allow all parties of the fundraising process to communicate and stay on the same page. To improve the cooperation process, the best fundraising virtual data rooms offer features like direct messaging, task manager, and other additional functions that facilitate teamwork.
Safety is crucial for legal businesses. This is why law firms, corporate legal departments, federal, state, and local governments, criminal and civil courts, and banks use virtual data rooms daily. Once uploaded to the data room, sensitive documents become entirely safe, with the VDR still boasting lightning-speed access even in the most stressful and time-sensitive situations.
When several lawyers are involved in the same process, they get granular access to documents, files, and all the required information. In the meantime, unauthorized individuals or companies will not corrupt, copy, or share sensitive data.
Significant changes in the business environment or in legislation pose such significant risks that companies need to act fast to manage them. VDRs help businesses mitigate risks through the following:
VDRs provide two main benefits in real estate transactions: (1) the ability to work with large files and (2) the anonymity of potential buyers.
The first main benefit allows real estate agents to share as much data as they need from the beginning of the deal (share property videos, photos, or house plans/drawings) to its closing (convenient documents negotiation and signing).
The second main benefit allows real estate agents and property owners to hide the fact that several potential buyers study the property and pick the best option.
The primary purpose of any virtual data room software is to keep, manage, and share the most valuable data during the deal-making process. Online data room providers help, on the one hand, the seller become better prepared for the deal and create a well-planned strategy, and on the other hand, the buyer to examine all documents and foresee accompanying risks and pitfalls.
To maximize the purpose of the VDR, look for VDRs that offer the following functions:
In addition to these, look for the best virtual data rooms that offer other advanced security options such as:
Also, look for the virtual data room providers that offer personal training, if needed.
iDeals Virtual Data Room is a secure virtual data room solution used by more than 4,000 companies worldwide, including many Fortune 1,000 companies since 2008. The virtual data room solutions from iDeals are based on a continuous innovation approach, including constant R&D efforts, powerful cloud infrastructure, and instantly available customer services. With iDeals’ advanced document sharing technology and shatterproof security, dealmakers worldwide can fully comply with due diligence requirements.
ShareFile VDR is a cloud-based data room appropriate for the deals executed by various professionals such as financial advisors, brokers, government contractors, biotech and bio-licensing companies, real estate firms, private equity firms, etc. ShareFile virtual data room is equipped with a multi-level security system: the data is encrypted, the documents contain dynamic watermarks that prevent unauthorized dissemination, and the access is allowed only based on two-step verification.
DataSite is a powerful data sharing solution that streamlines the due diligence in M&As, disposals, IPO, or any transaction requiring due diligence. These features from DataSite enable customers to complete faster, smarter, and better transactions. DataSite dramatically reduces transaction times and deal expense through the presentation of documents in the data room.
Box Virtual Data Room is a secure content management and collaboration platform founded in 2005. Recently, Box introduced a virtual data room service with advanced security features, digital rights management, and a convenient file storage system to upload contracts, financial statements, and other due diligence files. Multiple layers of protection keep business-critical information safe and secure while helping teams and enterprises across industries easily share, manage, and collaborate on their most important information from anywhere, on any device.
CapLinked offers its customers a simple scheme of operation. The first step requires the client to upload large volumes of highly confidential corporate documents to the virtual platform. Then, potential and current partners are invited and segregated according to the relevant level of data disclosure. Digital rights management then enables the room administrator to control the information disclosure and full granular control of the access to the data.
Intralinks is a global technology provider of secure content management and collaboration solutions. Founded in 1996, Intralinks enables the exchange, control, and management of information between organizations through their virtual data room and deal space solutions, suitable for data sharing inside and outside of the corporate firewall. The company’s key product, Intralinks VIA, supports strategic collaboration solutions for a range of industries, including financial services, life sciences, technology, and manufacturing.
BlackBerry Workspaces provides secure mobile solutions for data sharing and distribution with its virtual data room, enabling users to collaborate more easily as it increases their productivity. Uniting data-centric security with a user-friendly experience Blackberry Workspaces applies security and advanced digital rights management to documents from your preferred enterprise content repositories to multiple destinations within and outside your organization, including web, desktop, and mobile.
Brainloop Secure Dataroom is an advanced virtual workspace with complete security architecture, global 24/7 availability via a web browser, and its own tablet apps. Brainloop ensures secure collaboration in a transparently secure online workspace while delivering end-to-end protection for confidential documents. Enterprises worldwide use Brainloop for boardroom communications, research and development processes, legal work, and any other area where you need to share confidential documents.
SmartRoom provides virtual data room services for numerous business areas, such as capital markets, legal solutions, corporate exchange. Secure document hosting and sharing among partners, convenient management of sensitive corporate information, confidential discussion of the data directly within the platform – all these features attract deal-makers (investment bankers, private equity managers, etc.) and make them look for the most protected, efficient, functional and convenient VDR available.
Dropbox is a famous online file-sharing center where users can store, share, and download data and documents. In some ways, Dropbox has reorganized the ways people manage their files. Features that make Dropbox a popular solution are the ease of use, the possibility to log in and share their data with anyone quickly. It also provides some free storage space, so many individuals prefer Dropbox to other cloud providers.
There are lots of online data repositories available, and it may be tricky for you to choose the best for your project. Here are some useful tips to help you get the most out of your data room:
Pay close attention to security and functionality, and get a solid grasp of your project’s specifics so you know what you need from a VDR. With these tips, you can now compare the VDR providers to determine the best virtual data room for your business deals. Read the reviews and compare VDR functions, capabilities, and rates.
An agile VDR service that can satisfy any needs of various sized companies in any industry
Multi-level security system, reliable and intuitive service
Focuses on large enterprises, has a highly intuitive interface
Full customization, easy installation, access expiry, and detailed tracking possibilities
Comprehensive activity tracking, data security
Works swiftly with enormous volumes of information
|7.||BlackBerry Workspaces (Watchdox)|
Mobile-friendly content and file share capabilities with different content management systems
|8.||Brainloop Secure Dataroom|
Its main focus: providing an environment for safe information exchange
A practical and functional data room solution.
Suitable for personal information exchange but not for sensitive documents.