A VDR is an online data storage facility that can be used by companies to share important documents with external parties in a highly secure online environment. Commonly used in financial transactions, VDRs serve as virtual “meeting rooms” where buyers, attorneys, accountants, and other professionals can securely view confidential documents. The VDR provides companies with the tools to carefully collect, organize, share and monitor critical business files during transactions.
With the ubiquity of computers in our world, virtually all businesses today rely on software and technology tools to run their businesses smoothly and efficiently. VDRs are ideal for companies that want to store, share and track business-critical information in a paperless manner.
What are VDRs Used For?
The use of virtual data rooms has become the norm for modern financial transactions. Advances in online security over the past decade have greatly accelerated the redundancy of physical data rooms, which has proven counterproductive and problematic for parties involved in transactions. Virtual data rooms provide companies with a highly efficient and convenient platform to securely share and track sensitive business information anytime, anywhere in the world. Most commonly, virtual data rooms are used for the following types of transactions:
- M&A;
- exams;
- initial public offering;
- fundraiser;
- strategic partnership;
- intellectual property management;
- council notices.
The Best VDRs
Comparison of the best online data room services:
- iDeals Secure Data Room Provider
- Intralinks
- Merrill Datasite
- Brain Loop
- Watchdox
- boxes
- Ansarada
- Digitize
- Firmex
- SecureDocs
What Should You Look for in a Best VDR Provider?
ITo choose the right VDR provider for your business, you need to consider 7 important things:
Safety. a best VDR provider will go beyond standard security and provide you with advanced security measures such as virus and intrusion protection, data encryption (at rest and during transport) and network firewalls.
Access controls for documents. Document access controls are another area to look for to choose a VDR provider that suits your needs.
User activity tracking reports. The best VDR providers know and understand that controlling access to documents is only half the riddle; You also need tools to track user activity.
Properties tailored to your needs. the best VDR providers ensure that their customers have exactly the features they need to enable smooth transactions.
pricing. the best VDR providers offer transparent pricing models that meet your needs.
Proven track record. Make sure you choose a VDR provider with a proven track record to simplify transactions in your specific industry. It’s not just about having confidence in the chosen supplier; It is also about ensuring efficiency.
Customer service. Last but not least, a best VDR provider will have a customer support team dedicated to giving customers the kind of fast support they need and expect!
Who are the VDR Vendors in the Market?
There are currently many VDR vendor. Some of them have been in business for a long time, have established themselves in the market and have documented expertise in meeting the needs of specific niches:
Vault Rooms has long been a VDR vendor for companies belonging to the bottom and middle markets. In addition to providing VDRs with a number of features that make it easy to securely collect and share documents, Vault Rooms also has unique features specifically designed for the needs of companies in the biotechnology and pharmaceutical industries.
Merrill’s Intralinks and DataSiteOne are designed to facilitate mergers and acquisitions for Fortune 500 companies.
Firmex, a VDR vendor placed great emphasis on meeting the needs of the legal industry.
Ansarada, a VDR vendor based in the UK, showcased its expertise in facilitating overseas transactions.
It should be noted that this is not a complete list of VDR pvendors. Such a list would be exhaustive. The names mentioned above have a proven track record in facilitating transactions and their longevity in the market is a testament to their expertise in their respective niches.