Is a VDRM Right For Your Business?

VDRs, also referred to as electronic data rooms, also referred to as Virtual Deal Rooms, are online repositories that enable companies to securely exchange documents for any kind of business transaction. They eliminate the need for physical documents and permit you to share crucial business information with multiple parties at once. VDRs are crucial for investment banking processes, such as IPOs, M&A and capital raising.

VDRMs are also useful for executives in the C-level position who have to share sensitive data and files with other service providers, investors or other external parties. They can also be used by HR departments that maintain employee records as well as project managers who are involved in a variety of business functions. The simplified document sharing process and rigorous security measures offered by a VDR ensure that sensitive information does not end up in wrong hands.

A common pricing model is based on a set amount of storage space per year or month which makes it ideal for smaller projects where you know how much data and documents you’ll need to save and access. This method is also for companies that don’t plan to exchange large audio and video files.

Other pricing models include flat fees and subscription-based models. Free file-sharing services, like Google Drive or Dropbox, provide basic security functions, however, they lack the features provided by dedicated paid VDRs. Specialized paid VDRs, including iDeals, SecureDocs, and Dealroom offer a variety of security features that make them more appropriate for more sophisticated document sharing.