Online data management and deal-making have become so much easier and safer with the evolution of virtual data rooms. An M&A transaction that used to take months or even a year can be completed in about 38 days. That’s because online data room software gives dealmakers the luxury to share data, conduct due diligence, and communicate online from anywhere, anytime.
As the demand for virtual data room software grows, data room vendors have constantly been innovating and offering a wide range of features for every type of usage. Let’s get you acquainted with data room software, its modern-day features, and the top virtual data room providers in the industry.
A VDR or virtual data room is a secure, cloud-based document management solution that businesses, professionals, and dealmakers use for data storage, sharing, or data distribution for regular use or during financial transactions.
Originally, online data room software was just limited to mergers and acquisitions. However, with the passage of time, modern-day data room services are rendered in complex transactions like initial public offerings, litigation, real estate management, due diligence, biotech licensing, and bankruptcy and restructuring.
Data rooms are especially helpful in all types of work with investors. They help companies securely gather, store, and share information with investors while having the ability to track and analyze their dealmaking interests. This is why data rooms are especially helpful when creating hedge funds. You can learn more about hedge funds creation and management at: https://mnacommunity.com/insights/starting-a-hedge-fund/.
What gives data technology an edge over similar solutions is the combination of different types of features for data management, digital communication, and deal management. For example, VDRs have tools for different forms of communication, such as online meetings, Q&As, group chats, and one-to-one conversations.
Furthermore, data room vendors now offer niche-oriented services. For example, M&A data rooms eradicate repeat requests, file duplication, and process repetition during deal-making. Dealmakers can track deal progress and assign and manage tasks with ease. Top-tier data rooms also provide checklists for different due diligence types.
In addition to that, data room vendors collaborate with seasoned dealmakers to provide professional consultation to businesses and less-experienced dealmakers.
Following are the features that you may consider when choosing a virtual data room.
First things first, security is the pivotal element in VDRs. That’s why modern-day data rooms are mostly ISO, FINRA, HIPAA, GDPR, SOC2, SSAE 16, and FISMA-certified. Following are some latest security features that you can easily find in the best data rooms available in the market.
Other notable features include granular document permissions, built-in redaction, and multi-factor authorization.
Virtual data rooms are turning out to be complete deal management and data management solutions due to their unique features (mentioned above). They give you multiple layers of data protection, reduce duplications, and eliminate operational inefficiencies. Some notable data rooms include iDeals, ShareVault, Dataiste, SecureDocs, and DealRoom.