The common misconception about virtual data rooms is that they are only valid for storing data. Yes, a virtual data room is primarily designed for safe data storage, but modern VDRs are not just repositories; they are high-end business solutions enriched with project management and collaboration tools.
Online data room software can help businesses in many ways with its business-oriented features, and this is why we are going to discuss some of them today.
Top 6 benefits of virtual data rooms for businesses
1. Faster due diligence
Due diligence is a critical process in any large-scale business transaction like initial public offerings, fundraising, mergers and acquisitions, real estate deals, etc. The due diligence phase is based on two essential things:
- Fast communication
- Instant access to documents
Virtual data room software makes this process simple and faster. The company available for acquisition can upload its corporate documents in a virtual data room and organize them in a recommended manner. Moreover, virtual data rooms are centralized platforms; all the data can be stored in one place.
Furthermore, an electronic data room provides real-time communication features, including:
- One-to-one private messaging
- Audio and video conferencing
- Group discussions
- Real-time Q&A sessions
2. Easy and remote access
VDR software is a cloud-based platform easily accessible from anywhere, anytime. Whether you are out of town or on a recreational trip, your business data is just one click away. As a matter of fact, you can access data in your virtual data room without an internet connection.
Current-day virtual data room providers offer dedicated mobile and tablet apps. Remote accessibility benefits investors, business owners, stakeholders, remote workers and project teams.
3. Organized and easily retrievable data
Do you know that employees waste a significant amount of their time finding paper documents? Even if the company has an organized paper documentation system, it will take time to find a file or a page from it.
Data room software not only helps you organize your business data in your desired order but it can be retrieved in seconds. For example, the full-text search feature helps you find a file by writing a sentence or paragraph, or a phrase in the search bar.
You can also add search tags while uploading documents in the VDR and search them via keywords, file name, type, and data range. The auto-indexing feature automatically assigns a number to every document as soon as it is uploaded.
4. Data room security
Impeccable data security is one of the biggest advantages of virtual data room software. Following are some remarkable data security features in VDRs.
- Multi-factor authorization. A user can only log in after entering the correct password and a one-time generated code which is usually sent on the user’s mobile number or email.
- Log-in notification alert. Users are notified about log-in attempts; if the attempt is unauthorized, the user can immediately discredit the log-in and inform data room administration about it. The administration can immediately remove the concerned device from VDR.
- Remote purging. Remote purging feature helps data room administration remove a lost, stolen, or damaged device containing VDR documents.
5. Document security
Virtual data rooms not only protect your data from hackers or external threats but also provide maximum document security. Here is how VDRs protect your documents:
- Document access permission settings allow the management to limit a user(s) from accessing a folder, section, document, or page in a document.
- A user (file creator) or administration can revoke document access anytime.
- “Fence View” mode restricts users from taking photographs, screenshots, editing, saving, downloading, or printing any file.
- Digital watermarking. Data room users can add hidden or visible watermarks to their documents. With these watermarks, it is possible to trace the originator of any particular document and the users who edited it.
- Data backup. Virtual data room vendors have servers at multiple locations, and every document you upload in the VDR is automatically backed up on a different server.
- End-to-end encryption. Users can store or share documents in encrypted form. Only the intended recipient can get the decoded version.
6. Reduction in administrative expenses
Where data room software automates workflow and document management, it also helps businesses save thousands. Because on average, a company in the United States spends almost $400k on printers, papers, paper clippers, folders, cartridges, courier charges, and other similar expenses. An electronic data room not only minimizes these expenses, but it helps to avoid physical meeting costs as well.
Pro tip. Even after these futuristic and high-end features and cost-reduction benefits, virtual data room services are available at very affordable and flexible prices.
A virtual data room is multi-purpose business software designed to provide maximum ease to businesses, corporations, professionals, enterprises, non-profits, etc., in any possible way. The best part? These high-tech solutions are easily affordable, even for startups and small businesses.
If you feel interested in finding out more about virtual dataroom providers – virtual-dataroom.org will tell you just whatever you need. It offers a ready-made review of the best solutions on the market, so that you can compare virtual data rooms on your own and make the best buying decision possible.