VDRs (also known as electronic data rooms or virtual deal rooms) are online repositories that permit companies to securely share documents in any type of business transaction. They eliminate the need for physical paperwork and allow you to share crucial business information with multiple parties at once. Investment banking processes like IPOs, capital raising and M&A require huge amounts of information sharing, which VDRs help facilitate.
VDRMs are also beneficial for executives in the C-level position who anchor require sharing confidential files and data with service providers, investors or other external parties. They can also be used by HR departments that maintain employee records, and project managers involved in various business operations. VDRs have a simple document sharing process as well as strict security measures to make sure that sensitive information doesn’t get into the in the wrong hands.
A typical pricing model is based on an amount fixed per month or year of storage space. This makes it ideal for small-scale projects where you already know how much data you will require to keep. This pricing model is best for businesses that don’t plan to trade large amounts of audio or video files.
Other pricing models include flat-fees or subscription-based models. Although free file-sharing platforms like Google Drive and Dropbox, provide basic security options, they fall far short of the features that are available in dedicated paid VDRs. Specialized VDRs that are paid for, such as iDeals SecureDocs and Dealroom provide a range of security features that make them appropriate for document sharing with sophisticated features.