what is virtual data room
A virtual data room is a secure online repository used for the secure storage and sharing of information. A virtual data room is commonly used in investment banking to store and transmit files for mergers and acquisitions (M&A) transactions, debt syndication, and venture capital/commercial financing transactions.
More often than not, virtual data rooms are used within the scope of corporate due diligence for tasks such as the collection, storage, sharing, and review of documents during the transaction process.
Crucially, virtual data room access is offered to participating organizations and delegates, often in the same way that the client portal functions – that is, with documentation viewable only to pre-approved users of the platform. Of course a platform like Clinked offers all the functionality of a virtual data room, but with more functionality you’d expect to find in a comprehensive client portal platform.
What Makes a Good Virtual Data Room?
Therefore, we have established that a virtual data room is the ideal platform for securely exchanging confidential business data in a secure and structured environment. But with a huge range of virtual data room providers on the market, there are many factors to consider when choosing the right virtual data room for your needs.
Depending on your specific needs, the following features and functionality can make all the difference:
white label branding
You may have encountered the practice of white labeling in the past without knowing it was the term for it. White labeling essentially allows you to put your branding and logo on a third party product and claim it as your own.
Why would you want to do that? Well, for many reasons, but especially so that you can promote your own branded client portal to your clients without the need to invest huge amounts in the platform, not to mention the time required and the stress of developing such Don’t,
For example, Clink D, the world’s favorite custom client portal, raised several million dollars in funding over a 13-year period. Assuming you want to avoid that kind of time and financial commitment but still enjoy the benefits of your branded client portal, the white label approach is a great way to provide great value to your clients with a ready-made platform. Is. To go.
Custom functionality and workflow
Before you commit to a client portal, it’s important to understand how it will support your business.
The key to successfully deploying SaaS (software as a solution) products is to make sure they work for you – not the other way around. That is, the software should not try to incorporate your own work practices—rather, the software should be flexible enough to meet your needs.
Most ‘off the shelf’ platforms do not accommodate this level of personalization. Of course, there is a platform that does.
Easy to use
When adopting a virtual data room for internal and external teams with varying levels of technical expertise, it is important that all parties can use the system without extensive training. Your virtual data room needs to be intuitive – otherwise you may find it’s not being used.
The key to setting up a virtual data room utility is as simple as it is effective – book a demo before committing to any platform.
When choosing a virtual data room, as with most SaaS products, it’s always best to start small and upgrade. While the inevitable demo and trial period will uncover the platform’s suitability for you to some extent, it’s only once you start using it in real-world situations that you’ll truly appreciate the value and potential pitfalls. Make sure your VDR provider offers the flexibility to upgrade and downgrade as per your needs.
Wondering how much to pay for a VDR? We have written a separate article about VDR pricing.
Arguably one of the most important aspects of your virtual data room is the ability to manage document sharing.
Be aware though that there are workflow and access requirements around this document. Do you need version control, audit trail functionality, user permissions and the ability to share upload and download functionality with third parties?
Getting documents on the platform is the easy bit. Integrating those documents into a secure and efficient workflow is another consideration entirely. If you need any guidance on what an effective document control strategy looks like, contact the team at Clinked.
Content hierarchy and structure
The format for storing and retrieving documents within the virtual data room presents something of a paradox, although on the front end, the system must be the definition of simplicity, providing the user with an intuitive and easy-to-use interface that feels almost Natural. Conversely, the technology required to efficiently deliver such a complex user experience is usually quite advanced.
It’s important to ensure that the virtual data room you choose not only provides the intuitive experience mentioned above, and this is something we see at Clinked as very valuable, providing universal search that allows users to find documents, messages, files and more. Other data with a simple word search – a Google for your virtual data room, if you will.