Virtual data rooms (VDRs) are online platforms that offer greater convenience, security, and cost-effectiveness compared to traditional data rooms. Start a free trial with DocSend and try our VDR.
It can be confusing, but when people say “data rooms” they’re usually referring to VDRs. These have the most useful features and make the most sense for a modern business to use.
With cutting-edge VDR features, DocSend helps to reduce wasted time in the deal-making process, during M&A, fundraising, and other important moments in a business or organization.
If you want to enhance efficiency and increase the likelihood of success during a deal, you need a top-quality VDR. Here we’ll explain the different types, their benefits, and how to choose one.
Types of data rooms
There are several types of data rooms, each with its own characteristics:
Physical data rooms
Once commonly used, these are now relatively rare. They serve as physical spaces for documents and require individuals to be present at a specific location to access the files, typically in an office building. They also mean you need physical security measures, such as locks and keys.
Digital data rooms
These provide increased accessibility by storing documents in a digital format. However, they still require installation, maintenance, and specific software to operate. Digital security like a password or login is also necessary, and you still need to be in a specific location to access them.
Virtual data rooms
VDRs are online platforms that enable secure file storage, sharing, and collaboration—completely remotely. They offer anytime, anywhere access, and tough security through user permissions and access logs, which also keeps things transparent. VDRs remove the need for infrastructure, for much lower costs.
You can learn more about how DocSend’s virtual data rooms work to drive business deals forward.
How to choose a virtual data room
When selecting a VDR, consider the following factors:
Sicherheit
Look for advanced encryption to safeguard sensitive data, granular user permissions to control access, and document analytics to track user activity within documents.
Security is the main priority during due diligence, fundraising, M&A, and many other activities, so top-notch security is a must for any VDR you choose.
When you use DocSend for your VDR, you also have the option of adding dynamic watermarking, which provides an additional layer of security, accountability, and peace of mind.
Convenience
Looking for tools that have compatibility with various file types, like documents, audio, video, spreadsheets, and images, is very useful for more efficient work in a VDR.
Collaboration tools such as commenting, mentions, and notifications also enable communication and encourage stakeholder engagement during a deal—nudging the process along.
Choosing a VDR with user-friendly file-sharing features, such as sharing via a simple link, is also very handy. Learn more about secure file sharing with DocSend.
Cost-effectiveness
Always look for a VDR that offers pricing plans tailored to different needs. Scalable technology also makes sure the VDR can expand without additional overheads, as and when you need it.
Integrations for your existing software can also improve workflows and help to save on costs. Check out DocSend’s integrations, which connect to Salesforce, Zapier, and many other tools.
You can start a free trial and then choose our VDR for your business, with several flexible pricing plans available when you pick DocSend.
Data room and VDR meanings explained
Traditional data rooms, while still occasionally used, are limited by their physical nature and lack of advanced security features.
VDRs, on the other hand, offer advantages like enhanced security, convenience, and cost-effectiveness. DocSend combines all the features mentioned above—and many more.
What uses are there for Virtual Data Rooms?
Start a free trial today and experience the benefits of DocSend VDRs.
