Virtual data room services allow organizations of any size to securely store their data, cooperate on projects, and facilitate dealmaking.
If you haven’t enjoyed the benefits of implementing VDR in your business yet, read this article to learn what a virtual data room is and how to choose the best virtual data room provider for your company’s needs.
What is a virtual data room?
A virtual data room is a cloud-based repository for the secure storing and sharing of sensitive data and other types of corporate files. The hallmark of virtual data room providers is the enhanced security they offer, ensuring the privacy of their users’ data. This is what traditional file-sharing services don’t have.
Every virtual data room vendor provides a set of features that improve internal corporate security, facilitate dealmaking, and enhance productivity.
Virtual data rooms are often used for due diligence during such complex financial transactions as M&A, private equity, venture capital, or loan syndication.
Note: A virtual data room is also often called an electronic data room, online data room, virtual deal room, or simply VDR.
7 factors to consider when choosing virtual data room software for your company
When considering using a virtual data room and searching for the best option, pay attention to the following seven factors.
1 – Provider’s experience
Usually, the more experience a particular vendor has on the market, the more quality service you expect to get when using it. However, it doesn’t always work that way.
Sometimes, younger virtual data room providers offer more modern services and are much more user-friendly.
2 – Usability
Virtual data room software has to be easy to set up and use for all users, regardless of their technical background.
On top of that, the best virtual data room providers usually offer a few deployment options and a set of integrations. This way, you can reach your virtual data room from any device and enjoy working with your favorite software products like Zoom, Slack, or Microsoft Office without the need to leave the VDR space.
3 – Pricing
Virtual data room pricing depends on many factors: from the provider’s expertise and recognition to the variety of features offered.
Additionally, every vendor has its subscription model: some charge on a per-month basis, while others offer quote-based pricing and consider every customer individually.
On top of that, most virtual data room providers offer a free trial that lets prospects test the platform before purchasing a subscription.
4 – Features set
The variety of features a particular virtual data room vendor provides is what usually distinguishes it from others.
As a rule, there are features for document management, document security, tracking, collaboration, access management, and user management. Think of what your company would need from a virtual data room and search for it.
5 – Security
This is probably the most important factor since a VDR’s mission is to maintain end-to-end security of its customers’ data.
The variety of security measures a vendor can take ranges from multi-factor authentication to several data centers in different locations.
It is also a must for every provider to at least have such world-acclaimed certifications as ISO 27001 and compliance as SOC 2.
6 – Quality of customer service
Customer support service is also important since all data room members — including employees, investors, and directors — should get knowledgeable assistance when they experience any trouble with the software.
Make sure there are a few ways to contact the support team and that every specialist can help you out.
7 – Customization options
The best virtual data room providers also introduce customization features that enable users to give a virtual data room their company’s look and feel. Customization options usually include the ability to tailor logos, headers and footers, and invitation emails.
Tips on selecting the best online data room software
On top of the key factors that you should consider when choosing the best virtual data room, there are also a few extra tips.
➔ Read reviews. There’s no better way to find out what user experience to expect from a particular vendor than reading real users’ feedback.
➔ Put the best data room providers to a test. Most likely, you’ll have a few favorites when searching for the best VDR solution. To decide on the winner, compare virtual data rooms, taking advantage of the free trials they offer. Also, conduct demo sessions and talk to the customer support team.
➔ Consider your budget. If you’re launching a startup or have a small company, your budget might matter a lot. Think of what price you’re ready to pay and define the services you expect to get for that cost.
Virtual data room software is a cloud-based repository where you can securely store and share sensitive corporate data.
When choosing the best VDR provider for your needs, consider its experience, usability, set of features, pricing structure, security measures, quality of customer support, and customization options.
On top of that, it would be nice to explore real customers’ feedback, test a few vendors, and think of your budget.