A virtual data room, more commonly known as a VDR, refers to a database located on the Internet that enables companies to store and transmit sensitive and top-secret information, especially during financial transactions. It is a type of filing system or electronic filing system. A very common use of virtual data rooms is through mergers and acquisitions due diligence. Since mergers usually require a lot of research, most of which is confidential, VDR is used. In the event that a merger or takeover does not take place, access can easily be closed.
Development of the VDR Industry in North America
North America was found to be the continent with the largest share of the electronic data room market. This is mainly due to the rapid growth in the adoption and use of virtual data room services by various businesses and organizations. In a number of developed countries, such as the United States and Canada, the adoption of data room software is rapidly becoming a normal trend.
Likewise, the need for secure and reliable data transmission is growing rapidly. This need for secure and simple methods to securely store sensitive data is one of the reasons for the creation of VDRs. Likewise, the demand for efficient and transparent ways or options for sharing data serves as a starting point for secure data exchange and security solutions. It is expected to grow in North America, especially during the forecast period. Likewise, an increase in the number of mergers and acquisitions, as well as fundraising and collaboration with key stakeholders, have driven the market to develop.
Virtual data rooms also continue to evolve and introduce new technologies. For example, one new provider called DealRoom recently emerged as a reliable project management software. The program not only includes traditional virtual deal room features such as secure online data storage but also includes project management features. The latter is specifically designed to help teams manage due diligence data rooms more efficiently. By combining traditional virtual data room functionality with project management, teams no longer need to switch between Excel trackers, VDR software, and email during checkout. Everything can be completed on one platform.
The Single Window approach is becoming increasingly popular among those managing M&A transactions such as investment banks and corporate development groups. They can use advanced technology to speed up due diligence, and they can also manage other aspects of a deal, such as post-close integration.
More technologies such as artificial intelligence and smart file search are expected to hit the online data room software market. These time-saving technical features are of great benefit to users by helping them optimize their processes and operate at peak efficiency.
The Best Data Room Providers in the US
This section of the data room review is dedicated to the comparison and a brief description of the best virtual data room providers available on the American market.
The software is designed for medium and large businesses and is available for various platforms, ranging from Windows to iOS. The monthly price starts from $25 and is considered to be one of the most cost-effective in the industry. All new users receive a 30-day free trial period which gives access to all the features of the software:
- M&A management
- Fast upload of files of different sizes
- Well-developed reporting
- File management with AI
- Drag-and-drop function
It’s often used in the sphere of law, banking, corporate development, financing, etc. In general, all medium and large-size businesses can find applications to this online data room service. It allows clients to upload documents of 50 GB maximum, customize multi-level control access, and perform a contextual search.
This virtual data room suits all kinds of businesses, from small to large. A huge benefit is that the software can be used both as an online solution and in offline mode. It’s well integrated into MS Office and makes the data storage and management experience as comfortable as possible.
BlackBerry Workspaces (Watchdox)
The company provides the next benefits:
- Around-the-clock customer support
- Free demo mode
- Low monthly pricing ($15 a month per user)
- Different editions (Send, Collaborate, Secure Plus) for various needs
- AES-certified 256-bit encryption
- Unlimited storage space
- A wide range of supported platforms (including BlackBerry)
Watchdox is mainly used in healthcare, social media & entertainment, financial services, and more.
This company’s data rooms are operated under AI management, are completely safe, and undergo security checks on a regular basis. It provides features like:
- Locking and tracking of files
- Team collaboration and Deal collaboration
- Security time-outs
Unfortunately, the VDR software is suitable for M&A only. Besides, it can be used on Windows and macOS mainly.