Past in 2013, Forbes proclaimed the digital knowledge room (VDR) trade to be one among their Eight Hot Industries for Startups in 2013 – setting its five-year compounded annual growth rate as 16%.
With the popularity of VDR for online file sharing and due diligence on the up, dealmakers around the world are capitalising from this up-and-coming trend and realising the convenience and cost-saving benefits.
Starting life as physical data rooms before the conception of the internet, this face-to-face meeting space would act as an ‘open house’ for buyers and sellers to share, read and present physical documents. The meeting space would be hired for however long the transaction required, which often ended up being extremely costly for both the buyer and seller – both of whom would have to organise their own transport and accommodation.
The seller would be present at all times to ensure that no undue photocopying took place. Again, this was an inconvenience, but there was no other way.
What are VDRs?
Since the internet took off, and especially cloud computing in later years, the potential for online data rooms – aka VDRs – has been in existence.
This online archive system allows buyers, sellers and interested parties the opportunity to share files and upload confidential documentation; a much safer alternative to faxing and posting because viewing can be controlled.
With a secure ID and password provided by the seller, buyers can view secure files. They will have various levels of access, with the options of printing, saving, copying and downloading restricted should the seller say so. The seller can also view the analytics of the VDR, noting how often a document has been viewed, how long for and how the buyer has interacted with them; which documents had been downloaded, for example.
As a result, companies such as Imprima offer a virtual data room web hosting carrier that gives you customers stable and strong amenities, available from the remedy of the place of work. Irrespective of if the merger or acquisition is going down in a close-by metropolis or on the opposite aspect of the globe; VDRs present the final word environment for a lot of industry offers.
The prices related to the old fashioned bodily information rooms are eliminated, and the companies and events can keep in touch the use of the VDR’s platform whichever time zone they function in. Therefore, they provide a more cost effective, handy and safer option to trade documentation and full industry transactions.