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Every modern-day business or organization places process automation and secure data management on the top of their priorities list. The world has become a global village where people and businesses are going digital in any possible way. Remote teams, freelancers, cross-border acquisitions, joint ventures, etc., collaborate through online platforms such as virtual data rooms.

Online data room software has gained immense importance in the last few years, especially when Covid-19 forced changes in work practices. Data room software provided secure online data storage and communication channels, allowing businesses to keep things going during this pandemic. Now, businesses and professionals feel more comfortable using remote work channels, and this is why data rooms are the future.

But, the question is, рow can you personally benefit from a virtual data room? If you are a business owner, independent contractor, freelancer, remote worker, or investor, a virtual data room can be a very useful asset for you. Read on if you want to know more.

What is an electronic data room?

An electronic or online data room is highly secure cloud software globally used to store and share business-related or personal documents. Online data rooms are hosted by certified data room vendors where you can store data and share it with your teammates, group members, colleagues, or employees.

Businesses use data room services as data repositories and remote working places. VDRs are equipped with contemporized collaboration tools such as video meeting software, private or one-to-one messaging, group chats, Q&A tools, shared documents, and many other useful features.

In addition to that, data room software can be used for executing business deals online. VDR vendors offer specialized deal rooms for business transactions like asset acquisition, initial public offerings, fundraising, real estate transactions, auditing, etc.

How can you benefit from a virtual data room?

Let’s just keep enterprises and corporations aside: how can small businesses, remote workers, freelancers, or independent teams use data room software to maximum effect?

1. Retailers

You might be thinking, how can retail stores benefit from virtual data rooms? Retailing is a form of business, and retail stores are engaged on multiple fronts simultaneously. From dealing with customers to storing data to bargaining with suppliers or wholesalers, retail stores have to keep things in order. Here is what they can use data rooms for:

  • Storing important business data like inventory and financial records, regular customers’ details, marketing plans, etc.
  • Communicating with suppliers and wholesalers on a single platform
  • Signing various types of legal documentation online
  • Communicating with suppliers, and using records in the court of law if needed

2. Freelancers

The freelancing industry has been booming since 2019 when Covid-19 hit the world hard. Due to the availability of remote workers, businesses now prefer hiring freelancers, and professionals also love to freelance.

As freelancers deal with multiple clients and colleagues at the same time, they can really use data room software for good. Here is how:

  • Freelancers can communicate with clients in the virtual data rooms; they can arrange video meetings and share updates about the projects.
  • With data rooms, freelancers can create separate folders for different clients to organize data in a better way. They can also manage their work calendars and portfolio.
  • All the communication and data room activities can be recorded in the VDR and used for legal purposes.
  • All parties can sign NDAs and contracts online thanks to electronic signatures.
  • Freelancers can ensure seamless collaboration with their teams using virtual data rooms.

3. Lawyers

Legal advisors or attorneys have been using data rooms as data repositories and communication channels. Lawyers deal with highly sensitive and personal data; an unauthorized data leak can cost them money, face imprisonment, and may even lose their licenses to offer legal services.

Apart from that, lawyers have this legal obligation to maintain records of cases they undertake. In short, lawyers have to deal with huge volumes of data, and for that, they can use virtual data rooms.

They can also use data room software to directly communicate with the clients, sign documents, arrange video meetings, and share updates. Most importantly, everything will be done in a controlled and secure environment.

Apart from that, virtual data rooms are commonly used by:

  • IT firms
  • Pharmaceutical companies
  • Healthcare sector
  • Education sector
  • Investment banking
  • Life sciences
  • Oil and energy sector
  • M&A deal makers
  • Fundraisers

Best data rooms in 2022

The VDR market is already pretty much saturated, but here are some of the best and highly trusted data room vendors:

  1. iDeals
  2. Merrill
  3. Firmex
  4. DealRoom
  5. SecureDocs

Summing it up

Whether you have a team of freelancers, run a small business, or work as an independent professional, you can use a virtual data room to simplify and digitalize your work. VDRs are easy to use, secure, and cost-effective. Lastly, you can unsubscribe from their services just whenever you want.

Click here to read more about data room solutions.