How to Choose a Virtual Data Room Provider?

Choosing a virtual data room (VDR) can be a daunting task. There are so many companies out there that are offering their clients the entire world only to get them signed up. However, as soon as you log into the VDR, you notice that it is pretty empty and lacks a lot of features that you need to conduct business.

Instead of going from one VDR to another and trying each of them out, take advantage of our handy virtual data room reviews, where we compare and contrast the various virtual data room providers and give you the pros and cons of each.

When selecting a virtual data room there are many factors that you should take into account. First of all, consider your purpose of using a data room and your business objectives (i.e. will you be conducting an M&A transaction, online due diligence, or you simply need a safe and secure online storage system to keep all of your files).

Now, think about what features you will need, the lack of which can be absolute deal breakers. If the price of the data room will be a primary factor, conduct prior research to make sure that the features you need will be included into the pricing category that fits your budget.

Choosing a data room provider is an important decision since you will be trusting them with all your sensitive documents, communications, and other materials. Leakage of this information to the public would be detrimental to your business and any other parties involved in the transaction.

Therefore, do your homework and find out as much as you can about each of the service providers that you are considering. At the very least, read product reviews which give you the pros and cons of each data room and find out what customers are saying about it.

While most, if not all, virtual data room reviews are biased towards a particular product, our review is completely impartial and presents only the facts about the services and features that each data room offers. Since it would be a good use of your time to do research on each individual data room we have done all of the work for you so you can spend less time shopping around and getting more work done.

What Data Room Is Going to Be the Best in 2021?

Within the past several years, the popularity of virtual data room services has greatly increased. Each dependable and modern company is looking for a reliable and secure online data room to store and share important information and financial data.

According to the statistics and virtual data room reviews, 2019 was marked by a rapid increase and quality development of data rooms. Considering different features and specifications, iDeals, Intralinks, and Ansarada are top 3 modern, easy-to-use and dependable solutions. Excellent data security and simplicity of use contribute to the constant development of these platforms.

Benefits of Data Room Software

Document Security

The main attention of VDR providers is concentrated on the security of data uploaded by clients. Advanced encryption of the information at rest and in transit, discreet revocation procedure, data room access, and multiple-level authentication are the leading methods of a document security management plan.

Online Due Diligence

The procedure is important for numerous aspects, with M&As being the primary ones. Basically, it is the process through which the sell-side discloses files related to the transaction, while the buy-side examines the files. VDR is an excellent environment inevitable for M&A due diligence and used for safe and risk-free preservation of files.

M&A Deals

This is one of the most common cases of resorting to virtual data rooms. Merging or acquiring a business presupposes much research and review of volumes of documents. Thus, companies that are engaged in M&As in Hong Kong use the benefits of VDRs.

Best Virtual Data Room Providers

1. iDeals
star star star star star 4.89 / 5.0
2. Firmex
star star star star star 4.31 / 5.0
3. Intralinks Dealspace
star star star star star 4.06 / 5.0
4. Merrill Datasite
star star star star star 3.64 / 5.0
5. Ansarada
star star star star star 3.19 / 5.0

Virtual Data Room Solutions

Physical data rooms that were popular some years ago have been considered outdated from the moment virtual data rooms appeared in the market. It is obvious that the development of industries has completely changed the way companies and individuals do business. Nowadays, VDRs has become an indispensable tool in any deal and business transaction. Due to the 24/7 access users have to business information and the minimal risk of human error, online data room is getting increasingly popular during M&A and a range of other business processes.

Virtual data rooms have become a norm for financial due diligence, as information is safely preserved, easily shared, and securely stored. The most common uses of the modern data room include the following:

M&A

Both the merger and acquisition processes presuppose the exchange, research, and review of documents. To simplify the process of obtaining access, companies that are involved in M&A can use VDRs as an excellent way to take part in negotiations with an ability to safely view confidential and valuable information.

IPO

This transaction requires much transparency for public and prospective shareholders. Meticulous document storage and management with an online data room is an optimal variant, which will allow going through the necessary steps, aimed at launching and survival of IPO.

Fundraising

No matter if you own a large company or a startup, getting engaged in fundraising rounds can be the key to the development and growth of the business. However, it is complicated to convince investors to fork over heaps of banknotes. At this point, online data room due diligence may serve a great option for document and data sharing. It can facilitate the exchange of sensitive information and guarantee improved control over the process.

Strategic partnership

Even if companies do not merge or acquire, partnership sometimes matters much, as it is a beneficial option for specific services and new ventures. Arranging a secure way of sharing valuable information is a primary step of quality and long-lasting partnership.

Secure document sharing

Once companies require to securely share documents with other providers, prospective investors, internal employees, any external parties and other people or companies, having a strong online data room can make the process much easier and faster. The bottom line is that a VDR is necessary for a range of other transactions and experiences, so it is inevitable to select the room, suiting your major needs.

A virtual data room is a safe online service, which provides easy document storage and sharing and allows people or companies with a protected access code to see, analyze and work with your data. It is a vital tool for strategic corporate transactions, specifically fundraising, joint ventures, Mergers and Acquisitions and IPOs. The main benefit mentioned by both parties is security. You can upload the information and be sure it will not get lost or copied. Using the leading virtual data room online makes your transactions more efficient and fast. Besides, you can share the information with several parties simultaneously.

Among the most significant benefits of VDR users claim the following:

  • Dependable service
  • Reliable security
  • Simplicity of use
  • Convenience
  • Competitive cost
  • Quick cooperation

Data Rooms in Industries

Energy

It’s the most globalized industry among others. High-powered data rooms play a vital role in successful operations and efficient energy deals and are used for debt, joint ventures, reporting, M&A buy- and sell-side, gas and oil acquisitions, regulatory compliance, equity fundraising, etc.

Financial Services

Secure data rooms improve the way of interaction with customers and colleagues, allowing sharing sensitive information with a number of parties and working on big-scale confidential projects. Using them for financial services is easy, cost-effective and secure.

Biotech

Life science companies use VDRs for M&A, clinical trials, secure document storage and management, fundraising, IP management and licensing, biotech IPO and regulatory communications. This saves funds and time and provides full data security during any IPO process in the biotech industry.

Legal

Every legal or business transaction involves amounts of confidential and important information, be it M&A, real estate deals, intellectual property, criminal and civil litigation, or bankruptcy. Data rooms are able to keep everything under control and secure.

Financial Services

Secure data rooms improve the way of interaction with customers and colleagues, allowing sharing sensitive information with a number of parties and working on big-scale confidential projects. Using them for financial services is easy, cost-effective and secure.

Infrastructure

Governments normally invest in new infrastructure. VDRs help to smooth challenging utility deals and close them successfully. Utilizing them, users can showcase the cash flows of their infrastructure and utility assets, get insight for successful outcomes, control the workflows and get secure and smart deals.