VDRs (also known as electronic data rooms or virtual deal rooms) are online repositories that allow businesses to securely share documents for any type of business transaction. They eliminate the need to use physical documents and permit you to share critical business data with a variety of parties at once. Processes in the field of investment banking like IPOs capital raising, IPOs and M&A require massive quantities of information sharing that VDRs assist with.
VDRMs are also useful for executives in the C-level position who need to share confidential information and files with investors, service providers or other external parties. They can also be used by HR departments that maintain employee records, as well as by project managers who are involved in a variety of business activities. The streamlined document sharing and rigorous security measures offered by VDRs VDR ensure that sensitive data doesn’t fall into the wrong hands.
A typical pricing model is based on a set amount of storage space per month or year, which makes it ideal for smaller projects where you know how much documents and data you’ll need to save and access. This method is also for companies who don’t intend to exchange large amounts of audio and video files.
Other pricing options include a flat fee or subscription-based models. Free file-sharing platforms, such as Google Drive or Dropbox, provide basic security features, however they lack the features offered by dedicated paid VDRs. Specialized paid VDRs, like iDeals, SecureDocs, and Dealroom offer a variety of security features that make them more suitable for advanced document sharing.