Implementing a Virtual Data Room.

Once a company makes the decision to invest in a VDR, it may be overwhelming deciding which solution will not break the bank and will actually provide the most bang for a buck.

Virtual Data Room pricing isn’t a hidden one, and surprise charges are no longer worth talking about, in fact they are long gone as long as am concerned. Any reputable, trustworthy VDR provider will clearly display its pricing scheme, data usage allowances, security standards, and other relevant features. If this precise information is not easy to discern on the provider website, it may be best to shift the search for a VDR elsewhere.

 There is plenty of competition in the space, but that does not mean that all VDRs will be a worthwhile investment.

Most companies really need to consider their needs, both existing and future, to ensure that they select a VDR solution that will grow with them as they grow.

 Of course, in addition to the initial and monthly or annual costs, rapid adoption, immediate implementation, ease of use, and ongoing technical support will undoubtedly be top priorities. One thing that companies should consider is requesting a free trial, so that they can see whether a particular solution is the right fit.



It’s clear by now that businesses across industries have been turning to virtual data room providers, instead of physical data rooms, for decades, and for good reason. The evolution of the data room industry has changed the way people do business, and now serves as necessary tool for all parties involved in any business deal.

They provide users 24/7 access to business information in a secure online location that can be accessed from anywhere, all while minimize the risk of human error that could potentially kill a deal. But, as previously addressed, a deal room goes beyond a diligence round during M&A. Virtual data room providers help many industries successfully complete all corporate events in a secure, controlled, and malleable way. Here are a few industries that commonly use VDRs:

  Technology.

 Technology is an industry fueled with rapid innovation and growth. Companies are constantly raising funds, getting acquired, going public, and more. Having a secure, controlled way for corporate document sharing and storage is of paramount importance for tech. A data room for technology companies commonly facilitates the following financial transactions: Life SciencesThe life sciences industry, commonly comprised of biotech, medical devices, and pharma companies, have a lot of intellectual property to protect.

Companies in the life sciences industry frequently partner with other companies, license IP, raise funds, and have the need to protect an intellectual property portfolio. A data room for life science companies commonly facilitates the following:

  Investment Banking

Investment bankers look for a reliable virtual data room solution that streamlines the deal process. The world of M&A is complex and simple, secure, and fast due diligence is critical. Investment bankers are frequent users of online deal rooms and typically use them for:

  Legal Firms

Legal firms need to securely share confidential information with clients, staff, and other parties of interest. Virtual data rooms provide a streamlined solution that allows them to do this simply and quickly, as time is key. Legal firms use online data rooms for:

  Private Equity & Venture Capital

Private equity and venture capital firms conduct many types of business transactions, all which require sharing data with numerous parties. These companies are dealing with many complex financial transactions and must do so securely and quickly. Private equity and venture capital use data rooms for:

  Compare Virtual Data Room Providers

Regardless of industry it’s important that companies seek out the type of VDR provider that best suits their unique needs, and what many find, after careful assessment, is that those needs change over time. Commonly, companies will look for providers with specific feature sets, price points, security implementations, and usability which they can test during a free trial – offered by most providers in the industry. Below are three main types of solutions that companies tend to vet when looking for a VDR- traditional deal room providers, modern virtual data room providers, and collaboration tools with a comparison of virtual data room pricing, security, usability and features. In general, the traditional data room category is comprised of three data room providers:

 Merrill Datasite,
 RR Donnelley
 Intralinks.

 These companies have a long history in the M&A space and a highlight is that their products tend to be feature-heavy and secure, specifically for M&A. Many of them allow for relatively significant data uploads and storage, but in general, these data rooms are also heavy on price. It is important to highlight that many of the traditional data rooms were initially designed with the M&A process specifically in mind, as the due diligence process for M&A has always mandated voluminous data sharing and document scrutiny. But, because this heavily influenced their creation, their pricing models tend to reflect this history- per page upload fees, fees for extra users, etc.

This is the most expensive category of data room. The word on the street is that the traditional VDRs, due to the fact that they have been around so long, can be cumbersome to use. In recent years, a number of modern virtual data rooms have popped up and there are several players in this modern virtual data room space.

Three that stand out are: SecureDocs, V-Rooms, Ansarada. In contrast to the traditional solutions, modern VDRs tend to be easy to use, quick to set up, and relatively inexpensive to maintain. Prices vary greatly from provider to provider, but all things considered, this category is significantly cheaper than the traditional virtual data room category. In addition to having data room-specific features, modern VDRs prioritize data security and ease of use.
VDRs may all seem the same, but they each have distinct ways that will make one more desirable or useful than the other, depending of course, on a company’s preferences and needs.

 Once a company finalized in investing in a VDR, it may be overwhelming deciding which solution will not break the bank and will actually provide the most bang for a buck.

 The days of secret pricing, hidden fees, and surprise charges are, or at least should be, long gone.
A reputable, trustworthy VDR provider will clearly display its pricing scheme, data usage allowances, security standards, and other relevant features. If this precise information is not easy to discern on the provider website, it may be best to shift the search for a VDR elsewhere.

There is plenty of competition in the space, but that does not mean that all VDRs will be a worthwhile investment. Ultimately, companies really need to consider their needs, both existing and future, to ensure that they select a VDR solution that will grow with them as they grow. Of course, in addition to the initial and monthly or annual costs, rapid adoption, immediate implementation, ease of use, and ongoing technical support will undoubtedly be top priorities. One thing that companies should consider is requesting a free trial, so that they can see whether a particular solution is the right fit.



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