Virtual Data Rooms (VDRs) serve several purposes. It is used as a secure file storage for your company, a platform for managing due diligence during large transactions and a solution where you can collaborate with internal and external parties. At its core, this online repository is built for highly confidential documents, images, and files.
While it functions like cloud-hosted data storage hubs, a Virtual Data Room is more secure making it ideal for confidential business documents for business meetings, corporate-level negotiations, and file sharing.
Traditionally, Virtual Data Rooms are reserved for large corporations engaged in large M&A transactions, real estate deals or even during an upcoming IPO. However, its capabilities and other benefits have found its way to serve even small and medium-sized enterprises. In fact, Virtual Data Room providers are now offering software packages that suit the needs and budget of startups to reach a broader market.
According to the 2018 Q4 Virtual Data Rooms Industry Market Report by IBISWorld, the demand for Virtual Data Rooms is expected to grow. The industry is valued at $920 million in 2018 and is slated to increase in the coming years.
In a separate 2018 study by ResearchAndMarkets.com on the same subject, the Virtual Data Room market is looking to grow at a CAGR of 17.68% from 2018 to 2023. The industry was valued at $521.103 million last 2017. Experts anticipate nearly a $1.4 million average increase every year within the projected period.
These data show that more and more businesses are realizing the benefits of a Virtual Data Room, and you should not get left behind. Having a Virtual Data Room is beneficial for your business to stay at the forefront of innovation and, therefore, stay competitive.
If you are considering using a VDR for your business, then you may be interested to know the benefits you’ll gain from it. Check out the following ways how innovative companies are utilising Virtual Data Rooms, and you may even apply it to your own due diligence workflows.
1- Never Lose Documents
One of the benefits of using a Virtual Data Room is that once you upload your documents into the system’s server, the files stay there for as long as your due diligence process requires. The servers used to power your Virtual Data Rooms are highly secure and shielded from malicious and harmful cyberthreats such as hacking, phishing, viral and malware attacks.
Additionally, features such as watermarking and fence view greatly heighten the security of your documents. Watermarks are highly effective in stopping theft and misuse of your documents. Fence view, on the other hand, prevents information theft via screen capture.
2- Manage Permissions and Control Access
Virtual Data Rooms provide users with transparency. Individuals can’t easily access and view all the documents, files, and other pieces of information stored in the system if they don’t have the proper authorisation or permission to do so. You can configure the permissions per individual to ensure that they can only access documents that are related to their tasks and overall function.
Aside from managing access permissions, you can also set time constraints to further increase the security of your documents. For instance, you can limit Person A’s access to contracts and other related paperwork pertaining to Project B within three hours, from 2 PM to 5 PM every Thursday.
Overall, you have total control over permissions so that only the people you want to see the documents can see your documents. You set the conditions and implement the rules of access. With the visibility offered by Virtual Data Rooms, you can easily check who accessed and viewed which documents, as well as its duration and frequency. This capability tightens document security and encourages accountability in the workplace.
3- Collaborate Efficiently and Securely
Collaboration is an integral part of any business organisation, especially when you have to work with external parties and share documents that contain confidential information.
With a Virtual Data Room, you can provide your team and the people outside your organisation with a safe and secure environment to collaborate on different tasks and perform various actions such as contract review without worrying about information theft or breach.
Maximising VDR security features ensures that all documents are safe and secure from unauthorised access, tampering, and misuse. You can also derive actionable insights from your data room to further improve your due diligence and understand how your business intelligence is being applied.
4- Sign Documents Digitally
VDRs help streamline deal processes and accelerate approvals. Most VDR solutions come with digital signature capabilities that allow users to sign documents with ease. For VDR platforms that don’t have this feature, you can easily integrate it with an e-signature software. With this, you can quickly have documents signed by the appropriate or authorised party without having to exit the data room.
Contracts, acknowledgment receipts, announcements, and more can be signed with ease. You won’t have to spend time and resources in sending documents physically back and forth and suffer from a long approval process.
5- Eliminate Accessibility and Space Limits
Most Virtual Data Rooms can be accessed anywhere and anytime using a mobile device. You can view, upload, and share documents anytime and anywhere. This flexibility helps you perform your tasks regardless of your location, which is crucial so you can continue working even when on the go.
Global accessibility also attracts investors. You can invite potential investors to take a look at your documents such as financial reports, income statements, and tax files. Why send them actual paper files when you can just grant them controlled access to your documents? This way, sharing and viewing documents occurs in real-time, which results in a faster turnaround time.
Moreover, Virtual Data Rooms are designed to accommodate multiple people in one session and not experience lag or performance issues. You can make customer relations management big data small and easier to digest so you can truly capitalize on your business’ customer data.
Picking the Right VDR Package
When you’re ready to check out various VDR packages, one of the top factors you’ll consider is your budget. Traditionally, VDRs are a huge investment. With today’s technology, however, affordable and scalable Virtual Data Rooms pricing is made available. More importantly, you have to consider which one is the most cost-effective for your organisation by determining the features and tools you need specifically for your workflows and experts are here to help.
Most VDR products come equipped with standard features such as customisable permissions, watermarking, user activity monitoring, branding, and project archiving. It is crucial that you dig deeper into a VDR’s interface and provider specialty. Additionally, you have to choose an intuitive VDR solution that does not require a steep learning curve as this can eat up your time.
Overall, to get the best out of your investment, identify your bottlenecks and explore various tools that can help you solve them. Imprima VDR is a good place to start. With its user-focused solution, you can rest assured in handling your transactional processes. It is also ISO compliant, has support 24/7/365, and a 99.9% uptime.