In today’s business environment, virtual data rooms have revolutionized the transaction process. The key reasons why businesses prefer VDRs instead of physical data rooms are instant 24/7/365 access from any location and any device with an Internet connection, secure data management, and storing as well as much time and money savings during secret business deals. Plus, the online version of deal rooms takes away all pitfalls and risks, reducing the possibility of a deal not going on as planned.
Today a data room became a secure online meeting place for all parties involved in the agreement. Data rooms provide full control during online due diligence processes. Also, these secure online data repositories simplify the cooperation between all parties. The virtual data room has evolved to become a tool to help the entire deal course, not to perform due diligence. Apart from M&A, companies use virtual data room software for such deals as loan syndication, private equity, and venture. Many industries use virtual data rooms, including the following ones:
Many datarooms offer similar services, such as secure data storage, data management, and sharing. The other functions may vary. The best virtual data rooms provide military-level security, multi-language support, full-text search, in-document linking, and a wide-ranging selection of other advanced functions.
Online data rooms are popular among different business industries because they resolve a stack of issues businesses face when dealing with corporate transactions:
The number of potential use cases of using secure virtual data rooms is close to infinity. Namely, firms that run their business in legal, real estate, life science, biotech, and other industries use this software for different purposes. For you to get the hang of how it works, we have collected the most common cases below.
Every merger and acquisition deal includes a due diligence process.
M&A is always accompanied by a large volume of confidential documents that require to be stored protected with several security layers accessible in VDRs. Such security level is unattainable in customer-centric solutions, e.g., Dropbox, Google Drive, Microsoft OneDrive, Box or Hightail, etc.
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.
The seller’s side has transparency on user activity, documents, or buyer requests analytics, which grant these 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 4-step procedure:
In a case when all digital documents are already collected, setting up a virtual data room for selling a business can take 10 minutes or less.
Moreover, virtual data software collaboration options and the capacity to update existing files on the fly 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 deal room that lets users share information quickly and safely cannot be done without when a firm of any size (and big businesses in particular) raise money.
What’s more, virtual data rooms’ features like a Q&A section and comments allow all parties of the process to communicate and keep all parties on the same page. To improve the cooperation process, the best virtual data rooms offer a set of 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, such sensitive documents as legal files become entirely safe, 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.
When a significant change in the business world or laws occurs, things can get hectic for the business, and its team has to act rapidly:
For real estate transactions, the main benefits of virtual data rooms are the ability to work with large files and the anonymity of potential buyers.
The first option 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 option, anonymity, 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. Online data room providers also help the selling side become better prepared for the deal and have a well-planned strategy. The buying side can examine all documents and predict all risks and pitfalls. That is why the significant features to look for in every virtual data room include the following ones:
Secure data management (data encryption, antivirus protection, account theft prevention, etc.)
Besides this, the best virtual data rooms offer several advanced security options, in particular, multiple-step login authentication, Print Screen button disabling, (Q&A) functionality, restriction access by time and IP, Microsoft Office integration, and dynamic watermarks. Plus, many virtual data room providers 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 1000 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 a variety of professional such as financial advisors, brokers, government contractors, biotech and biolicensing companies, real estate firms, private equity firms, etc. ShareFile virtual data room is equipped with multi-level security system: the data is encrypted, the documents contain dynamic watermarks that prevent unauthorized dissemination, the access is allowed only on a basis of two-step verification.
DataSite is a powerful data sharing solution that streamlines the due diligence in mergers and acquisitions, disposals, IPO, or any transaction requiring a due diligence effort. These features from DataSite enable customers to complete faster, smarter, and better transactions. Explore how 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 file introduced a virtual data room service with advanced security features, digital rights management, and 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 4-step scheme of operation. At first, a client uploads 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 enables the room administrator to control the information disclosure in addition to 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 that enables users to more easily collaborate as it increases their productivity. Uniting data-centric security with a user-friendly experience Blackberry Workspaces applies security and advanced digital rights management (DRM) to documents going 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 apps for tablets. Brainloop ensures secure collaboration in a transparently secure online workspace while delivering end-to-end protection for confidential documents. Learn why 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 its 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 filesharing 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 quickly log in, and share their data with anyone. 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 determine which one to choose for your project. Below you can find some useful tips which you should help you get the most out of your data room.
Furthermore, the leading providers offer you lots of excellent features, which help you gather, organize, and present your data. They also simplify and fasten the time of deal-making. Here are some of the most useful features that you may find helpful:
These are essential issues to consider upon choosing the proper platform for your project. The following comparison will help you to determine the best virtual data room for your business deals. You are welcome to read the reviews, compare functions, capabilities, and rates. We recommend paying close attention to security and functional aspects. And remember that you should have a solid understanding of all specifics of your project and what you will need from a VDR before you get started.
|Rank||Data Room Provider||Why it's Best||Read Overview|
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
Its main focus: providing an environment for safe information exchange
Suitable for personal information exchange but not for sensitive documents.