Last updated on June 26th, 2023 at 10:08 am
INTRODUCTION
Over the past few years Virtual Data Rooms have been the fastest growing and most powerful tools in computing software. They have broken all the barriers of place, time, locations to bring professionals and businesses all over the world together. It’s hardly any wonder that in the past two years the VDR market has seen an upward swing of over $ 800 million in revenues. Moreover, the Covid-19 pandemic has turned the business world inside-out, as the pandemic has drastically altered the way people work, where they work from, the transactions they work on and how they run those transactions. This has specifically highlighted the importance and utility of a good VDR.
VDRs are online data rooms
VDRs are online data rooms more like a library or hall of records. Thanks to VDR technology the need to store physical paper documents has reduced significantly, in fact it’s been almost abolished completely. The cloud-based technology of a VDR gives you instant access from any location and on any devise through the internet. VDRs not only help to reduce time waste and are eco-friendly, but are also a very secure way of storing data. Besides with more technological advancement the security and efficiency of VDRs is only growing stronger.
VDRs keeps, organizes and shares your data in a very secure environment. Its audit trail also allows you to see who has viewed which document, how many times so that you get authentic information about what your client/deal maker is most interested in. They also enable you to examine all the documents to help predict any future risks, pitfalls and trends. VDRs have evolved to become a tool that helps facilitate an entire deal process and not just due diligence. It is nowadays widely used for M&A, loan syndication, private equity and venture capital across different industries.
Virtual Data Room
While technology is constantly evolving and the vagaries of market conditions affecting most markets, the VDR market seems to be on the upswing with the global Virtual Data Room market expected to grow at a CAGR of 14.5% over the forecast period 2019-2027 to account for US$ 3.66 billion in 2027. But if the VDR market needs to sustain its growth then VDRs need to offer not just technology but also unsurpassed service, not as an after-thought or an optional extra but as an integral part of its base offering. The advantages of using providers of virtual data rooms that offer this kind of service include using the best practices in managing passwords, training the deal teams to use the data room and closing the project after the deal is complete.
The future of virtual data rooms lies in its promise of security-of documents, of secure communication, of secure internal reporting and secure deal prospecting. Eventually all this seems to be leading towards a centralized virtual office space that will eliminate the need for commuting, physical buildings and a host of unnecessary expenses, maybe not immediately but in a few years.
The Confiex team specializes in providing premium virtual data room solutions tailored for businesses. With their vast experience in working with document sharing platforms, they have been actively supporting the Virtual Data Room community since 2015 by offering valuable information to users free of charge.