What Information is Best for Virtual Data Rooms?

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If your firm is focused on managing mergers, leading contract negotiations, or facilitating a bidding process, many data management tools associated with these processes are outdated, hard to use, and expensive to implement.

Thankfully, virtual data rooms (or VDRs) provide a modern, easy-to-use solution. Virtual data rooms grant access for authorized users from all parties to secure documents that can be viewed, printed and downloaded depending on the permissions assigned by the data room Administrator. VDRs are cost-effective, efficient, secure and scalable, making them an ideal way to securely store and share your companies most confidential data.

However, this leads to an important question – what information should be stored within a VDR?  Let’s cover the most common virtual data rooms scenarios and the types of documents that are associated with them.

Which Documents Are Typically Stored in Virtual Data Rooms?

A cloud-based data room allows you to quickly and securely collaborate on sensitive information critical to your business.

Whether you’re lawyers reviewing M&A documents, employees managing corporate regulatory risk, or commercial real estate firms finalizing deals, these data rooms are used in many scenarios and are a great option for storing, managing, and securely sharing files in the cloud.  

So, what document types are best suited to be kept in a virtual data room?

1. Primary Business Information

One of the most common uses of virtual data rooms is the storage of basic, yet highly-essential, documents associated with a company’s corporate status. Documents within this context include:

  • Certificates of Incorporation and related amendments.
  • A list of corporate subsidiaries and associated ownership percentages.
  • Business licenses and permits.
  • List of current corporate officers and directors.
  • Shareholder meeting minutes, consents and other associated documents.

2. Capital Raising and Securities Offerings

Virtual data rooms offer an ideal solution for businesses that raise capital. Fundraisers require secure online spaces where financial information needs to be stored and shared  with numerous individuals from a variety of companies and venture capital firms. Files that are frequently stored in a VDR include:

  • In-depth shareholder lists, which tend to include vital information like the name of individual investors and the number of shares issued to them.
  • Stock purchase agreements and other documents mandated by organizations like the Security and Exchange Commission (SEC).
  • Stockholder agreements, stock option agreements stock certificates, and further documents of similar importance.
  • Organization documents, which can include reincorporation documents and disclosures of previous business dealings.

3. Financial and Tax Information

Whether you are a  small or medium-sized business or a  large corporation, a virtual data room can prove invaluable when it comes to the secure storage of financial or tax-related documents. Documents in this context can include:

  • Historical and forecasted financial statements.
  • Federal, state and foreign tax return documents.
  • Analysis of cash flow and working capital.
  • Information associated with banking and investment accounts.

4. Intellectual Property Information

Invest in a VDR solution to protect your firm’s intellectual property. Common documents of intellectual property (or, IP docs) stored within virtual data rooms include:  

  • Summaries of patents and outstanding patent applications.
  • Contractual obligations which include the licensing of proprietary information to third parties.
  • Employee and contractor non-disclosure agreements.
  • Communications against organization believed to have infringed on an organization’s intellectual property.

5. Legal Information

Below are a few situations where a virtual data room can help manage legal documents:  

  • Being issued a subpoena for additional documents and the other party needs it immediately.  
  • A claimant needs to upload data but wants it only to be visible to themselves and the lawyer.  
  • Court filings have been made and various parties need immediate viewing access.

6. Bid Collecting

Virtual data rooms are great for deals and projects that require extra layers of privacy. You can use a virtual data room to collect multiple bids on a project without those bidders knowing about each other. This, in turn, let’s you share the same information at one time while still getting multiple bids.

Conclusion

Virtual data rooms are used in a variety of contexts. From satisfying the needs of enterprises to providing law firms and startups with a secure way to collaborate on critical documents, data rooms serve as a dynamic tool for the ever-changing business environment.

Virtual data rooms are a great way for any company in need of storing documents or other data in a manner that allows for a confidential and timely transfer of information between two or more collaborating parties.

If your organization is actively seeking cloud storage solutions that can help to streamline critical document sharing while upholding the highest level of security, then your team will benefit from a VDR.

Onehub offers secure document sharing that’s straightforward to use and affordable. Contact us today to learn more about our VDR solution for your business.

How to Comparison Shop for a Virtual Data Room

man standing in front of virtual data room

In the current digital era, it’s vital that businesses can operate both efficiently and securely online. It’s not enough to utilize the newest apps and software systems in your work, you need to be able to trust that the content you’re uploading, sharing and sending people is safe. When sharing your companies most sensitive information and financial data, using an unsecure process to store and share documents could have major repercussions for your business.

The right virtual data room allows you to get started in minutes and has the right set of features and security controls to protect your most sensitive information.

Explore the importance of virtual data rooms, the benefits they offer, and how to comparison shop for the best option.

What is a Virtual Data Room?

A virtual data room is an online storage system that allows someone to store and manage various types of documents. Virtual data rooms, often called a VDR, allow businesses to send proprietary information to clients, receive documents from a variety of sources and collaborate with users.

VDR’s also enable users to set various permissions on activity that occurs with documents within the system, so people have access only to the files that they need and have limited visibility to activity within the virtual data room. Businesses often use virtual data rooms to safely send sensitive client information such as contracts, deal negotiations, and bidding information. Therefore, it’s imperative that VDRs allow administrators to set robust user permissions, specific controls on files and folders and easily audit user activity.

A virtual data room is often available for a monthly or annual fee. The cost of the system may depend on the number of users, the number of data rooms needed, and the amount of storage space.

Additionally, factors such as custom branding, document watermarking, and document types supported may affect the cost of a VDR.

The Benefits of a Virtual Data Room

There are many benefits to having a virtual data room for your deal or transaction.

From a more efficient way to operate key business functions to enhanced document security, a VDR is a smart investment. Explore some of the most important ways a VDR can enhance the way you communicate with clients.

Better Document Security

When your company needs to quickly negotiate a deal, there is no better way to do so than by using a virtual data room. Created to securely transfer information from one source to another, a VDR can eliminate any concerns about who may accidentally be granted access to that Google Doc you just shared. The last thing you want to affect your next transaction is a security breach or accidental data leak.

A virtual data room allows you to protect against copying and pasting, file sharing or editing of any content.

Additionally, VDRs can prevent users from printing files, too. A virtual data room also enables the Administrator to immediately revoke access if a user or buyer withdraws from a deal or is no longer interested. In this scenario, their login is revoked and access to all documents is taken away immediately, unlike other document sharing and sync apps.

Confidently Share Information with Various Users

Sharing different sets (and sometimes subsets) of data with a variety of users can be challenging.

VDRs allows you to easily set granular permissions across a large set of folders and documents Whether you’re trying to negotiate a round of funding or sharing information for an M&A transaction, a VDR gives you the confidence you need to share information with user quickly and with the least amount of permissions required.

Streamlining Business Communications

If you’re looking to get a complex or sensitive client deal done quickly, a virtual data room can help.

Most VDRs allow users to preview more than 20+ types of file types within their system. This means your team, business partners, clients and prospective clients can seamlessly get access to the information they need. A virtual data room can also integrate with some of your favorite apps, making business communications really easy.

Now that you’re aware of some of the biggest benefits of VDRs, consider which features could benefit your company and your clients most.

Important Features of Virtual Data Rooms to Consider

When you think about how your team most often shares information, what comes to mind? Which business apps are vital to how your organization communicates with each other and clients? What security requirements are a make or break in terms of sharing files and content with people outside your team?

When comparison shopping for virtual data rooms, here are a few things to look for.

1. A Variety of Permission Options

If your team frequently communicates with various business partners and clients, it’s imperative you have a virtual data room that offers several permissions levels to users.

Additionally, you should be able to easily change or revoke those permissions as you see necessary. As your team changes and your client relationships evolve, making sure the right people have access to the right information is key.

2. Advanced Collaboration Features

Most businesses rely on a variety of apps, software programs and digital systems throughout their workday. Whether that’s a contract generating app or a financially based system, your VDR needs to be able to work seamlessly with the software you rely on.

Be sure to thoroughly research the integrations your VDR collaborates with.

3. White Label Friendly

Be sure you’re able to organize your VDR exactly how you prefer to. It’s vital that your system can be customized to your team’s preferences and can seamlessly reflect your company’s professionalism.

Whether this means uploading your logo to your system and changing your VDR settings so it reflects your brand’s colors and fonts, or more, your virtual data room should have white label options.

4. User-Friendly Organization

Many solutions tout a user-friendly interface but the best way to understand if the virtual data room you are looking into is a fit for your team’s workflow is to take advantage of a free trial.

Previewing content types, integrating with a variety of apps and creating folders and spaces you need are all essential to a well-organized VDR. When you’re dealing with sensitive business deals and new clients, the last thing you want to think about is wishing you could have a more organized system (or an easier way to organize your system) to send such important information.

Opt for a VDR that not lets you be hyper-organized so you can get back to focusing on your work.

5. Superior Enterprise Level Capabilities

Choose a system that will grow when your business grows.
The best virtual data room will give you options for additional storage space as you need it. Don’t limit how you’re able to communicate with your team and clients by choosing a limited virtual data room.

Compare and Shop for a Better Virtual Data Room Today

Regardless of your industry, the number of team members at your company or the number of clients you currently serve, a virtual data room can help you communicate more effectively today. Take the worry out of sending sensitive information and managing various content types by entrusting your important work to a VDR.

Now that you know what you should be looking for in a VDR, explore whether Onehub is the right virtual data room for you and your team.

Case study: Onehub Data Rooms shine for UK Solar Assets

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Data Rooms are great for projects that require extra layers of privacy like startup fundraising or bid collecting. But one of the first lessons in writing is “show, don’t tell,” so rather than tell you about Data Rooms again, we thought we’d show you how UK Solar Assets is using them to build multi-million dollar solar farms in Europe.

Building a solar farm is not a simple project. It requires experts from many different fields, months of research and investors who need to conduct thorough due diligence. UK Solar Assets selected Onehub’s Data Room solution because of its powerful toolset and straightforward pricing. We just launched a case study on UK Solar Assets that lays out more details, but here are some high level takeaways.

By using Onehub Data Rooms, UK Solar Assets:

Saved money – branding options and customization tools slashed web development costs.

Increased productivity – with strict role-based permissions, the company had better version control and reduced redundancies.

Enhanced communication – by integrating Onehub directly into its site, UK Solar Assets streamlined the collaboration process for all its partners.

We’re happy that Onehub’s Data Room solution help UK Solar Assets with their sustainable energy mission. Visit our Customers page to see how other world-class companies like the Seattle Seahawks, Limeade and Meetup use Onehub to get more done.

Onehub CEO explains the advantages of data rooms

We’ve written before about the benefits of Onehub data rooms. From enhanced security to increased privacy, data rooms can help you close deals faster.

Rather than write another post on the subject, we decided to let Onehub co-founder and CEO, Charles Mount explain directly why data rooms can be so powerful.

All Onehub plans come with a free 14-day trial, so you can set up your own data room and see for yourself today.