There are a lot of useful services your company isn’t using for different reasons. However, there are technical solutions that are difficult to refuse, because they can replace dozens of different instruments. We talk about online data room software. It is suitable for video conferences, messaging, document preservation and protection, transactions, fund-raising, due diligence, and company audits. This list can be continued, but let’s look at the four main options that virtual data room providers offer to a company today.

1. Data storage

Originally, virtual data rooms were designed as reliable online storage. They allow companies to manage all documents in a single place and keep data in any recognized format. Centralization means that all files are accessible on one platform. In addition, the user can use other features:

• Share documents with one user or business group;
• Comment or edit documents depending on access permissions
• Create live documents and invite other users to work together on them;
• Provide access to documents if necessary.

This way, you can organize a convenient file storage system that is flexible, simple, reliable, and secure.

2. The safest communication channel

Security is a virtual data room index. Online communication in the electronic data room is safe and secure. Since traditional messaging and e-mail are often under attack and cannot guarantee the level of protection that modern business requires, such communication methods are only suitable for solving certain organizational issues. When it comes to something serious and important, the leaders can meet in private in the conference rooms.

Instant messaging services in data room services are as secure as live meetings. They can be used to communicate with colleagues, partners, or investors without fear.

The software allows to:

• create groups or chat rooms;
• conduct online voting;
• create a poll;
• arrange meetings in video or audio format;
• conduct an online meeting of the board of directors;
• register and record meetings with investors or directors.

Apart from that, the best data room providers allow third-party integration of communication services if the built-in variety of communication and interaction between users does not satisfy your business needs completely.

3. Fundraising

Any startup needs fundraising. Even companies that have been confident for a long time but want to expand and maintain their competitiveness are going through this process.

The hardest thing in this process is to prove that your business idea is profitable. Just two steps should be taken to achieve this goal:

1. Make an attractive, informative presentation. Put the idea in such a way that it is clear to the investor.
2. Ideally prepare all documents that may be needed: financial, legal, personnel, and marketing. At this stage, the data room software can help, providing all the tools you need to structure your repository. It gives investors more confidence when you access files by inviting them to a virtual data room instead of sending links to traditional, less secure cloud storage.

For fundraising, you can apply additional tools of VDRs: Block FAQ, real-time notification about changes to files, interface settings, and so on. An investor can see all the files and documents he requires. But he cannot see who else is accessing this folder at that time. It promotes the concept of an individual approach.

4. Due diligence

Due diligence is the most important step before conducting business transactions such as:

• Fundraising,
• Mergers and acquisitions,
• Real estate or other assets sale,
• Primary Public Offer (IPO)

If due diligence is performed with problems or delays, it causes the transaction to fail. Data room providers give you all the tools to help avoid this issue. They allow and help the buyer or investor-banking organization to check and analyze the data. The target company shares business data safely, without the risk of losing it. Apart from that, potential buyers or investors get certainty relative to the target company.

The virtual data room provides fundamental points your partners need. You can also communicate with business parties by arranging audio or video meetings. There is another option: notes in documents.

How to choose the best VDR?

Almost all known VDRs have great features and many benefits. But it is essential that the proposed functionality coincides with real business needs and helps to cope with the maximum number of business tasks. So make a list of tasks and problems that the company faces from time to time.

The second step is to set budget limits because the prices vary. It is quite possible to find suitable solutions in different price categories.

With a list of desired options and an understanding of budgets, you can proceed to ready-made data room comparison tables. Such comparisons help to find a VDR that is the perfect price match and covers most or all of the company’s business needs.