Is a VDRM Right For Your Business?

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 necessity for physical paperwork and allow businesses to share important business data and share it with multiple parties at the same time. Investment banking processes such as IPOs capital raising, IPOs, M&A require huge amounts of information sharing that VDRs assist with.

VDRMs building a successful founding team for a startup are also useful for C-level executives who need to share confidential files and data with investors, service providers or other external parties. They are also used by HR departments that keep employee records as well as project managers who are involved in a variety of business operations. The simple document sharing process and strict security measures provided by a VDR ensure that sensitive information doesn’t fall into the improper hands.

A common pricing model is based on a fixed amount per month or per year of storage space. This is perfect for small projects, in which you know how much data you’ll need to store. This pricing model is best for companies that do not intend to exchange large audio or video files.

Other pricing models include a flat-fee or subscription-based models. While free file-sharing services like Google Drive and Dropbox, provide basic security options, they fall far short of the features that are available in dedicated paid VDRs. Specialized paid VDRs, such as iDeals, SecureDocs, and Dealroom offer a variety of security features that make them more suitable for advanced document sharing.