An electronic data room is an online space or database companies use to store and share important data and confidential information. It is a much better choice than a paper-based and physical data room because it provides more advantages and is very secure. It is mainly used during financial transactions and allows for a smooth due diligence process during private equity, merger and acquisition transactions, etc.
There are so many reasons why most companies opt for data rooms to share and distribute their private information with every other person involved in the transaction. It has become a widely used method and is gradually becoming the future of storage. You no longer need to travel worldwide or spend so much on printing services; instead, you can share these documents using data room software.
This article outlines everything you need to know about a virtual data room — the top data room software, the advantages of using a data room, and factors to consider when choosing data room software.
Why choose a virtual data room over a traditional one?
As stated above, virtual data room provides more advantages and makes the saving and distribution of private files easier in comparison to a physical data room.
Physical data rooms are stressful, expensive, and time-consuming. They require that investors show up at different times to analyze the documents in a room, and they are not very safe as anyone could access the stored documents.
On the other hand, with data room software, nobody has access to your data except someone you grant specific access right to. Besides, you can access your files anywhere, anytime, and from any device. You only need a stable internet connection and device to access it.
Data room software is mostly used to store high-value sensitive documents. You can keep legal, financial, and personal information in your data room; the administrator is the one who can grant access to documents and decide to what extent they can be used and when.
The top data room software
Now that you know the importance of choosing an electronic data room or a physical data room, let us look at the top data room software that is guaranteed to suit your needs.
iDeals virtual data room is a top choice of data room software among many corporate users. It is easy to navigate, set up, manage, and customize. This electronic data room is suitable for small, mid-sized, and big projects as it offers three different plans to suit these options:
- the Pro plan (small and mid-sized projects)
- Business plan (large projects)
- Enterprise plan (data room for several business objectives)
Users are guided at each stage of setting up their data room, as they communicate with support through email, phone, and chat (eleven languages). Besides, iDeals is available 24/7 (even on holidays and weekends). With over 700,000 business personnel from 120,000 businesses securely sharing documents using iDeals, you can rest assured that it is a top-notch virtual data room.
Some other benefits of iDeals are as follows:
- users can customize their data rooms with their company logo
- the data room is simple to set up and start a project
- files are highly secured due to end-to-end encryption
- users are regularly notified of any new activity in the data room or documents they viewed
Advantages of using a data room
- It secures your data. The most important advantage of using a virtual data room is that it secures your information as no one has access to it but you and whoever has been granted permission. Add watermark to files, get a detailed report of when your data was accessed and from where, backup your data, use file encryption, etc. Using these features, you can easily avoid any unwanted data leaks of security breaches.
- It provides full control of data. Users have complete control of their data when they use a virtual data room, unlike physical data rooms where the designated staff has total control over the stored documents. Administrators can grant the necessary parties access to records and to what extent they can be used. This lowers the risk of losing files.
- It improves workflow efficiency. Using an electronic data room enables business owners to close deals quicker as it improves working efficiency. The Q&A system is an excellent messaging service that keeps all communications encrypted and recorded; users can access more than one file simultaneously, add other parties easily, and upload and download several documents simultaneously. Besides that, all users get regular updates on any new activity in the data room, which allows everyone to stay on the same page.
- It is a cost-effective solution. An electronic data room is cost-effective because users no longer need to spend as much on expenses as they would when using a traditional data room. Business owners no longer need to spend so much on printing services and travel as you can do everything electronically.
- It offers convenience and simplicity of use. With data rooms, everything is convenient; users can access files from their comfort zone through any device. There is no need to constantly check the software as they are updated through the notifications system.
Factors to consider when choosing a data room
When choosing data room software, you first need to highlight your needs and abilities; this will help you select the right option. Besides your needs, mind the following:
- Security. Since security is a significant advantage and the strength of data rooms, you must choose a virtual data room with a strong security system. This way, you are guaranteed that all your files are securely stored.
- Budget. Your budget is another thing to consider when choosing data room software (alongside your project size).
- Customer support. When choosing a data room, you should ensure that they have an active customer support team that you can communicate with at any time of the day.
- User-friendliness. The data room should have a user-friendly interface, something you can easily set up and manage even as a non-technical person.
With the above-mentioned features and various benefits, we can conclude that data rooms are indeed the future of data storage. Thanks to them, you can easily store and distribute sensitive information securely, while keeping it in a single, centralized, well-protected space.