Before electronic documents, companies were required to visit a data room in the office of an attorney to review confidential documents. Digital data rooms permit companies to remotely and securely review documents remotely. Comparing virtual data rooms is crucial to choose the right provider for your business.
A comparison of data rooms should be based on features which distinguish the software from other tools for sharing files. For example, collaboration tools are useful for collaborating with colleagues but lack many features that VDRs offer. They aren’t equipped with security features, like the ability to audit, permission settings, and watermarking – features that are essential for sharing confidential business files.
One of the most important factors for a data room comparison is the pricing model. Most top-tier providers have the option of a monthly flat fee that provides unlimited users, a certain amount of storage, and advanced functionality. Some providers offer yearly plans that are less expensive than monthly subscriptions based on the number and volume of transactions.
The most commonly used uses for the virtual data room include M&A, fundraising, and due diligence. In M&A, the acquiring and selling company must conduct a thorough due diligence on confidential documents. A virtual data space allows both sides to access documents quickly and securely and assists in making due diligence more efficient. A data room can also assist businesses in raising funds by providing investors with access to documents in a secure manner that aid in decision-making and help speed up fundraising.