Inside the business world, it is often for businesses to store as well as share sensitive documents or information with partners. Due to its sensitivity and confidentiality, a method to safely secure that information is a must.
A virtual data room exists to fulfill just that. Before this, businesses often used a physical data room or also known as a due diligence data room. Its function is the same as a virtual data room which is to store and share sensitive information in a very secure and controlled environment.
However, due to its costs, nowadays businesses tend to lean towards the virtual data room option as it has the flexibility to be accessed from anywhere and anyplace.
What is a virtual data room?
A virtual data room, or in short, a VDR, is a secure online repository to store and distribute digital files and documents. VDR allows clients to store and share confidential documents in a controlled environment.
VDR often includes features such as file encryption, two-factor authentication, watermark implementation as well as single sign-on controls. This allows clients to host sensitive information whilst limiting the risk of the documents being compromised.
What is it used for?
The most common scenario when VDR is required is during Mergers and acquisitions or M&A. The controlled digital environment of VDR allows businesses to perform due diligence during the finalization of a deal safely and quickly as the involved parties are not required to be present in a physical room.
Another common scenario for VDR to be used is for an initial public offering (IPO) where a large sum of paperwork needs to be presented. With VDR, the information can be easily delivered in a read-only mode which saves time and maintains the security of the documents.
Our recommended virtual data room providers
Due to the high-security requirement nature of VDR, choosing the right providers to be the middle ground is crucial. Below are two virtual data room providers that we can recommend.
Ansarada is a virtual data room provider based in Australia and has been around since 2005. The company has served multiple IPOs, M&A, capital raising, and tenders for the world’s top companies.
Ansarada boasts in its simplicityー as in the ease of usage and their Artificial Intelligence (AI)-powered insight which nowadays, is in really high demand in the market.
Ansarada provided a price calculator to calculate the cost of their service and also offers a free trial for those who are looking for VDR but are still unsure about which one to pick.
Intralink is a cloud-based global financial technology provider for inter-enterprise content management and collaboration solutions. One of its active services is a VDRPro. A virtual data room service focused on dealing with M&A.
Intralinks’s VDRPro promises a high-security virtual data room with a seamless user experience. Its key features include streamlined user invitations, AI to help improve the M&A due diligence process by analyzing and managing files with integrated artificial intelligence, detailed reporting, one-step document approval, and automated publishing to reduce risk whilst saving time and speed deal prep, and integration to the Zoom app.
VDRPro’s pricing is not being shown to the public. However, clients may contact their sales department for further inquiries.
Virtual data rooms are important for businesses as a safe and secure middle ground to conduct various business transactions and deals that involve exchanging confidential documents.
We believe Ansarada and Intralinks can provide a safe and secure VDR for business transactions as both have gained enough reputation to be entrusted by various global companies.