Is a VDRM Right For Your Business?

VDRs, also known as electronic data rooms, also referred to as Virtual Deal Rooms, are online storage facilities that allow companies to securely exchange documents in any kind of business transaction. They remove the requirement for physical documents and permit users to share important business information with many parties at the same time. Investment banking processes like IPOs capital raising, IPOs and M&A require massive amounts of sharing of information that VDRs facilitate.

VDRMs can also be useful for executives at the C-level who must share confidential information and files with investors, service providers or other external parties. They are also used by HR departments that maintain employee records, and project managers involved in various business activities. VDRs provide a simplified document sharing process as well as strict security measures to ensure sensitive data does not fall into the in the wrong hands.

A common pricing model is based on a fixed amount of storage space per month or year that makes it ideal for smaller projects where you know the amount of documents and data you’ll need to keep and access. This approach is also better for businesses who don’t intend to exchange large video and audio files.

Other pricing models include flat-fees or subscription-based models. Free file-sharing services, such as Google Drive or Dropbox, provide basic security features, however, they fall short of the features of dedicated paid VDRs. Specialized VDRs for paid use like iDeals SecureDocs and Dealroom provide a variety of security features that make them suitable for advanced document sharing.

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