Business owners face a lot of problems and threats every day. Trying to solve them to stay in the market, they lose too much time which could have been spent on the company development, but the security and document management issues also cannot stand idle. Eventually, a reliable tool was invented which allows to store and share documents securely, automate and simplify the work, and conduct transactions more effectively. The name of this solution is virtual data room, and in this article, we’ll take a closer look at this concept.
History of the virtual data room
Virtual data room was born back in the early 2000s, but it only gained popularity a few years ago. All because, as the business developed, all processes and documentation slowly began to go digital. But the digital world has its dangers, namely cyber threats, which have led to data leaks in many companies around the world, especially during the coronavirus wave, due to the use of unreliable data storage methods.
The main advantage of data rooms is their security, gradually business owners began to realize this and now they are widely used around the world. It is a SaaS-based technology solution that gives its customers accessibility and flexibility as well as the ability to work remotely. Virtual data rooms are a modern replacement for physical data rooms, which have modernized all processes in their functionality as well as reduced your costs, and saved your time.
What processes are VDRs used for?
VDRs are useful in almost all industries, and are indispensable helpers during many business transactions, viz:
- M&A transactions are the most common use of VDRs, as these spaces were created purely for M&A transactions. They allow you to significantly simplify and speed up all stages of M&A with extended document management functions
- Comprehensive due diligence -providers offer ready-made templates and checklists to make the due diligence process successful and efficient
- Real Estate -with its universal file compatibility and out-of-the-box templates, VDRs help with the most complex real estate processes
- IPO – when it comes to involving many third-party users, VDR is ideal. It simplifies document organization and allows many users to be in the space at the same time, without any security threats
- Fundraising – this is where user activity monitoring, granular access permissions, and sharing features come in handy
This, of course, is not the whole list of VDR applications, they are also used for banking, startups, and corporate development.
Main features of VDRs
Below we provide a list of what quality data rooms typically have:
- Document security
VDRs protect your documents from data leakage, so they apply data encryption, detailed permissions that allow you to prohibit copying, forwarding, and downloading documents, watermarks to track documents outside the program, and remote document destruction even after uploading to a third-party device.
- General VDR security
Data rooms provide security certificates that meet all international standards, offer UI restricted access and two-factor authentication to protect logins.
- Document Management
Upload and organize large volumes of documents with minimal effort. To do this, VDR provides automatic features such as bulk document uploading, drag-and-drop, and automatic indexing. VDRs also either automatically format your documents into the right format or are perfectly compatible with all kinds of files. Smart full-text search lets you find the file you want in a fraction of a second.
- Easy to use
This room is very easy to use, and that’s their second main horse. They do not require additional plugins to install, have a clear interface, and are compatible with all operating systems.