If you’ve taken part in any sort of important private equity or venture capital deal, you’re likely familiar with a virtual data room.
A virtual data room is a modern replacement for what used to be a locked physical data room that used to be used as part of these transactions.
The point of a physical or virtual data room is to provide both sellers and buyers in any important deal to perform necessary due diligence. The data room provides access to critical documents and information that’s necessary for bidders to review before moving forward with the transaction.
Why a Virtual Data Room is Needed
The modern virtual data room is a secured website that stores digital documents as part of a major transaction.
Virtual data rooms offer an organization with a far more effective, and low cost way to share important information with potential buyers, without risking the release or distribution of proprietary or otherwise sensitive information.
Bidders or anyone else with a need to access that information receives controlled access to the virtual data room over the internet.
They receive limited access to the site, but the information itself is controlled through digital rights management (DRM) technology. This protects the seller from information getting stolen or copied.
This technology is accomplished though either a carefully secured website, or third-party secure applications that manage the virtual data room for you.
Some of the ways virtual data rooms protect both sellers and buyers in any important transaction:
- Controlled access
- Moderated viewing
- Controlled copying and printing
- All actions are logged
Because modern technology allows all of these features virtually, more companies are migrating away from the traditional data room in favor of a virtual one.
Not only does a virtual data room provide the same security, but the convenience and efficiency can significantly speed up these transactions.
Top 8 Virtual Data Rooms
The following are some of the best companies that manage and offer some of the best virtual data room products on the market today.
Any of these would serve your organization well. To choose the best for your situation, considering the security, access, and features your organization needs when performing important transactions with customers or clients.
This virtual data room service lets you activate your own secure room you can use to pass information to your external clients and even internal colleagues.
The service is set up to let you share your company’s sensitive information such as proprietary designs or internal financial data. The access approach keeps those who access the data completely isolated so no one involved in the transaction knows who else is accessing it.
Plans are available that don’t require long-term contracts.
This vendor provides secure virtual data rooms that are filled with advanced features.
Just a few of the companies clients include banks, law firms, and major companies that require secure access areas for their most important and sensitive transactions.
iDeals promises to offer flexible solutions that suit the needs of your organization’s unique transactions and those who take part in them.
From the well-known cloud company Citrix comes a virtual data room product called ShareFile.
ShareFile is probably one of the most secure ways to transfer confidential information with clients and colleagues. It’s the product many enterprises use to handle due diligence in venture capital or private equity deals, mergers, acquisitions, and more.
For any important, sensitive transaction, you know you can trust a name like Citrix. Citrix ShareFile VDR gives you the ability to secure and easily share highly-sensitive documents. The company also offers 24/7 customer support and various pricing options you can customize for your specific virtual data room needs.
Another industry leader in virtual data rooms is a company called SecureDocs. With an apt name, SecureDocs literally helps you share documents while keeping them as secure as possible.
SecureDocs provides solutions that also help you secure and share documents inside the organization as well as well external entities. This can be critical when employees need access to extremely sensitive proprietary company documents.
As an ultra-secure repository for your organizations most critical documents, SecureDocs includes features like e-signatures, flat-fee pricing, and a user interface that’s easy enough for even non-technical people to use with very little effort.
CapLinked is well known throughout the secure document industry, offering both document management products and virtual data room solutions.
Like most other virtual data room services, you can try the service through a free trial period.
The service also includes an API that your programmers can use to customize your own in-house, secure document applications. Whether through customized app or through the off-the-shelf CapLinked solutions, you can share and track secure documents. The service also offers full auditing of all secure document activities related to file access.
The cloud product is accessible across multiple platforms and devices.
If you want a simple virtual data room solution, you can’t go wrong with Digify. It’s one of the easiest-to-use cloud-based solutions for sharing confidential information and documents who are located anywhere in the world.
The company promises to save you time by making secure document sharing efficient and easy. This is because it provides automated solutions and built-in file tracking and document security.
The company has won awards for its advanced secure document sharing technology, including winning the RSA Innovation Sandbox award.
Digify is one of the most innovative products in the virtual data room market today.
Despite the seemingly millennial-style name, this isn’t a social media service. Huddle is one of the most efficient and secure virtual data room solutions you could choose.
The vision of the company is to provide secure document management within teams, which makes it a top choice for government organizations around the world.
It’s touted as a document management solution that lets teams securely edit documents together. However it’s version control and security features make it an ideal virtual data room solution for important transactional documents as well.
The service includes a free mobile app that lets you connect and monitor your documents any time, and from anywhere.
This service is named appropriate as the perfect virtual data room for managing deals.
It’s promoted as a “multi-party” solution for secure project management. But it’s the document management features that make it an idea solution for sharing secure documents with people who are even working outside of the organization.
The claim is that DealRoom runs faster and is far less expensive than running a physical data room. But it’ll speed up the transaction process by combining secure document management with process management tools like email and spreadsheet trackers.
Choosing Your Virtual Data Room
The virtual data room solutions provided above are just the tip of the iceburg when it comes to solutions for storing and sharing secure documents.
Running a successful business means that you’re going to have proprietary information and trade secrets that you’ll want to protect in order to remain competitive.
Virtual data rooms help you maintain that competitive advantage by securing and protecting your information, while allowing your investors, clients, and employees to access that critical information in a controlled and secure way.