Last updated on June 26th, 2023 at 12:51 pm
INTRODUCTION
Surviving in the business world can get tough for entrepreneurs. Business owners are always trying to outperform each other, employing various tactics to achieve this. They look at their rival’s success and use what they can to their advantage. A business’ sensitive data or information can be a dangerous tool in the hands of a competitor, that’s why virtual data rooms have become more popular.
Every entrepreneur knows how tough surviving in the business world can get. Competitors are always trying to out-perform one another, and they employ various tactics to achieve this. Most times, business owners are looking for the success secrets of their strong competitors to use it to their advantage. Getting sensitive information about a competitor’s business can be a very dangerous tool in the hands of another competitor. Therefore, every business owner is duty-bound to protect certain information about his business as jealously as possible. This could be the lifeline of the business.
We have heard cries of woes from startups that have had their hopes of attracting investors to their business shattered. To attract potential investors, they may have shared vital information about their innovative products or business ideas. Somewhere along the line, this information gets leaked to unauthorized persons either through carelessness with hard copies of the proposal or by some other means. You know how such stories end.
The innovative product or novel business idea designed to attract new investors is relegated to a copycat version. Why? A data thief has stolen the information which he could use or sell to other businesses that can hurriedly replicate the innovative idea or product and launch it into the market. Imagine the enormous heartbreak that comes from knowing that your carelessness with your business information led to the crashing of what could have been a ‘hit’.
Physical data room
The physical data room has been the only place where vital business information is being kept and shared until recently. Usually, paper documents that are required for due diligence are stored and shared therein with special restrictions as to who had access to the data room. This practice is now old-fashion as data thieves nowadays have devised various means of carting away with physical data without being detected. Security issues surrounding the use of the physical data room led to the advent of the virtual data room.
A virtual data room is an online platform or repository of information used for storing and sharing documents. These documents can be edited, organized, tracked, and shared within the platform at the discretion and control of the data room administrator. An example of a virtual data room is due diligence software.
We have already shared the merits of using a virtual data room in our earlier articles such as
- Easy Access
- Easy Navigation
- Flexibility and Control
- Unlimited Data Space
- Easy and Quick Duplication of Files
- Mutual Administrator and Client Confidence
The future of virtual data room in business
Market revenues generated by VDR companies were estimated to be around $1 billion. (Source)
Since its sudden popularity in 2017, the VDR has revolutionized how data is being shared, and deals are being made in the business world. Due to less paper workload and real-time access to information, business decisions are made faster and in a more secure environment.
According to Conatus News, as of April 2016, market revenues generated by VDR companies were estimated to be around $1 billion. IT companies continue to develop advanced features to make VDR documents as legally binding as their paper equivalent. Analysts have also emphasized the role VDR is playing in reducing the time for the bidding process by up to thirty days when compared to physical data rooms.
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.