Data room solutions offer real-time data exchange in various forms. Some of them come with built-in video or audio chat, allowing customers to communicate directly and effortlessly using their gadgets. VDRs also receive and transmit data in the form of documents that should only be opened by certain individuals.
How to Choose Data Room for Dealmakers?
There are several factors to consider when choosing data room solutions for your most complex deals, namely:
- Security. This aspect will interest you the most. It is important to choose a developer who stores all the information itself and does not give it to subcontractors. It is also worth paying attention to certification, reviews, customers, and so on.
- Convenience and functionality. It is necessary to take into account the format of files with which the system can work. For instance, you need to clarify whether the program can be downloaded by zip, on which OS it is available (Mac?). If you are dealing with international transactions, it is important that VDR is open 24/7 and supports multiple languages. Pay attention to whether there is a free demo version.
- Price. Most developers base their pricing on the space used and the amount of time the VDR is open. Some M&A law firms can afford to provide their VDRs. If you only need the program once, you should make use of services that will provide storage based on the amount of time. If you plan to use VDR regularly for several transactions per year, then purchasing a subscription is your choice.
Virtual data rooms are now being used in large corporate transactions as well as smaller transactions such as a property auction. Choosing the best online data room provider implies balancing cost, security, and other aspects of a real estate or M&A transaction.
Modern Data Room Solutions
Over the past 10 years, several modern data rooms for dealmakers have emerged. Three solutions stand out in this category, namely: SecureDocs, OneHub, and Ansarada. Unlike traditional solutions, modern programs are easy to use, quickly installed, and relatively inexpensive to maintain.
What count here is that prices vary widely from one provider to another. However, this category is significantly cheaper than traditional online data rooms. In addition to special features to speed up the transaction process, modern programs prioritize data security and ease of use. At the first glance, all data room software solutions may seem the same, but each has its nuances that will make one more desirable or useful than the other, depending on a company’s preferences and needs.
Modern VDRs are characterized by sophisticated security measures, including advanced encryption both in transit and at rest, multi-level authentication procedures, discrete data room access, and revocation procedures. Moreover, modern programs are more economical, easier to implement and navigate, and have more up-to-date user interfaces. In addition to these system-level peculiarities, there are also document-specific security features, including watermarks, disabled printing, and blind viewing.
The Future of VDR
As long as there are security issues, VDRs will continue to be improved to address them. Security is the main concern that this technology aims to provide. There are many ways to quickly transfer large amounts of data between users, but one wrong move can send it to hundreds of people for whom it is not intended.
The future of VDR will be characterized by competition over which service offers the most security and additional features. Chat features will become more common, so important meetings won’t have to be held on public platforms like Zoom, which often suffer from connectivity issues and lack security features.