Is a VDRM Right For Your Business?


VDRs, also known as electronic data rooms or Virtual Deal Rooms, are online repositories that allow businesses to securely exchange documents in any kind of business transaction. They eliminate the requirement for physical documents and allow you to manage vital business information and share it with multiple parties at the same time. Investment banking processes such as IPOs capital raising, IPOs and M&A require massive quantities of information sharing that VDRs help facilitate.

VDRMs are also beneficial for executives at the top of the pyramid who need to share confidential documents and information with service providers, potential investors or any other external organizations, HR departments that are responsible for keeping employee records and any other project managers involved in a variety of business processes. VDRs have a simple document sharing process as well as strict security measures to ensure sensitive data is not slipped into the wrong hands.

A typical pricing model is based upon the fixed amount per month or year of storage space. This is ideal for smaller projects that you know exactly how much data you will need to store. This pricing model is best for companies that do not plan to trade large video or audio files.

Other pricing models include flat fees or subscription-based models. While free file-sharing options such as Google Drive and Dropbox, provide basic security features but they do not offer the full range of the features that are available in dedicated paid VDRs. Specialized VDRs that are paid for, such as iDeals SecureDocs and Dealroom provide a range security features that make them more suitable for advanced document sharing.