Deal rooms became incredibly trendy over the past a couple of years. Brands get plenty of benefits using them. So there is no wonder the online deal room market became extremely vast and profitable. Brand new providers are developed all the time, and every one of them is willing to astound users with useful features on this constant battle for the interest of the audience.
But do electronic data rooms really differ that much from generic virtual storages? And why would a firm give money for it? Since there are many individuals who would ask these questions, let’s understand the technology behind the virtual deal room.
What is a VDR?
Let us start with the basics and discuss the app itself. It is a virtual storage where enterprises can store their sensitive files. But even considering that it is the most important function of such technology, the list of its features doesn’t end on just being an archive. Data room offers its users a complete interface for all enterprise interactions. Here partners can share the data, discuss details, get ready for meetings and some other. Basically, implementing this technology a corporation will have a full range of useful tools that will allow to enhance the workflow of the team and whole corporation.
So, whilst simple virtual storages can only offer a virtual space so a brand owner can store files there, VDRs are a complete business tool. These instruments can be used for Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other business processes.
Safety is vital
Of course, not each brand works with the sensitive information all the time. But even though this information can be not really important, any leader of the business would want to get their data stolen or illegally used. Virtual repositories like trendy Dropbox or Google Drive are not really secure – plenty of cases of data leaks have shown it to us quite clearly.
So, the most valuable difference of deal rooms is the data encryption and various methods of protection. Sure, generic online repositories encrypt their transmission lines as well – but not really the transferred data itself. And if someone has a direct link to the document, it can be easily stolen by hackers.
Virtual data room providers encrypt not only transfer lines but documents as well. There is no way they will be exposed to any kind of threat caused by malicious acts of hackers. Moreover, all virtual meeting rooms have a two-factor authentication. It means that to log in the user will have to enter the code that was sent to their phone in an SMS when signing in.
Besides that, the administrator of the virtual deal room can control the level of access other employees have. Settings can be changed at any time. And if any extreme situation appears, the room owner can destroy the file remotely or cut the access to it.
Unlike generic online storages, digital data rooms are meant to develop the working process of the corporation and among employees. So on top of that that parties can exchange the data with each other, they can also be involved in talks, create different votings, create Q&As and much more. It is rather convenient to have all tools in one interface.
Moreover, directors are able to watch the performance of their companies in the data room . Some providers even have an artificial intellect implemented in their applications. It allows to predict situations and tendencies and get deeper insights. Besides that, business owners can follow themployees and notice if there are any flaws in the workflow of the corporation.
In conclusion, there plainly are plenty of reasons to implement a online deal room in your company and stop using ordinary online repositories . When you try a VDR, you will never want to stop using it.