Virtual data rooms are secure platforms for storing and exchanging sensitive documents. They provide services and help make transactions easier and work more efficiently. While it may initially seem that all VDR solutions are the same, they are not, and they are all targeted to meet the needs of different business sectors. They differ in pricing, security implementations, and unique feature sets. For example, some data rooms serve only as storage, while others are better suited for collaboration. This article will highlight the main types of VDRs and give examples.
Why use virtual data rooms?
The business has moved to a new level where technology is critical. With the help of special software, companies can increase their productivity, reduce costs, and allocate resources more intelligently, making them more competitive in the marketplace. Virtual Data Rooms are a unique cloud platform allowing you to store and share your data online securely. With their robust security and data management tools, you can transact, collaborate, and more in the VDR space. However, not all VDRs can successfully combine tools designed for multiple processes simultaneously. For example, some data rooms are designed for mergers and acquisitions, and others are more suitable for IPOs. Below we will highlight the main types of VDRs and give examples.
VDRs for mergers and acquisitions
Mergers and acquisitions are where the virtual data room is used the most. Originally, VDR functionality was developed to close M&A deals and grew in other areas. VDR providers that have been in the market the longest are ideal options for this purpose. Such VDRs include Intralinks, Datasite, and RR Donnelly. For example, the hallmarks of these data room solutions are high security, large storage capacity, and versatility. However, they are also quite expensive because they retain the old per-page and per-user pricing models.
VDR for IPOs
Going public and the initial public offering process is a complex task that requires the preparation of many documents. The most important thing you need to achieve during this transaction is transparency to the public, the government, and shareholders. Citrix Sharefile Virtual Data Room is a great option for conducting an IPO. The provider provides large storage and the ability for an unlimited number of invited users, along with a robust security infrastructure – what you need to transfer data to shareholders securely.
VDRs for Partnerships
Even if a company and partners are not connected by a merger or business purchase, they often collaborate on many processes, such as entering a new market, producing raw materials, or even creating a new venture. In this case, they need a wide range of tools for collaboration and communication. Brainloop VDR is the provider that guarantees secure collaboration and sharing of sensitive documents. It focuses on partnership and offers winning tools for maximum efficiency in collaboration and safe storage.
VDR for fundraising
Raising investment is a very important source of revenue for a company. However, conducting fundraising is also not a simple process. Not only do you need to convince investors that your service or product is promising and profitable, but you also need to give them access to your most sensitive documents. A virtual data room that specializes in fundraising is the DealRoom Data Room. VDR offers flexible document management features, top-notch security, and a wide range of collaboration tools.