VDRs (also called electronic data rooms or virtual deal rooms) are online storage facilities that allow companies to securely share documents in any type of business transaction. They eliminate the requirement for physical documents and allow businesses to share important business data with multiple parties at once. Investment banking processes like IPOs capital raising, IPOs, and M&A require huge amounts of information sharing that VDRs assist with.

VDRMs are also useful for executives at the top of the pyramid who need to share confidential files and data with service providers, potential investors or other external organizations, HR departments that other are responsible for keeping employee records and many project managers who are involved in various business processes. The simple document sharing process and stringent security measures offered by VDRs VDR ensure that sensitive data doesn’t fall into the improper hands.

A typical pricing model is based on the fixed amount per month or per year of storage space. This makes it perfect for small projects, where you know the much data you’ll require to keep. This pricing model is ideal for companies that do not plan to share large amounts of audio or video files.

Other pricing models include a flat rate or a subscription-based model. While free file-sharing options such as Google Drive and Dropbox, provide basic security options, they fall far short of the features provided by dedicated paid VDRs. Specialized VDRs that are paid for, such as iDeals SecureDocs and Dealroom offer a variety of security features that make these more suitable for sophisticated document-sharing.