What are Virtual Data Rooms?
Virtual Data Rooms are online repositories where companies can organize and securely share their data. This makes it very easy to share specific files with colleagues, potential buyers, or investors.
Google Drive as a Virtual Data Room
Given that the majority of individuals are familiar with Google products, the easiest method to create a Virtual Data Room is by using Google Drive. Here, you can upload documents and share them with selected participants with just a few clicks. By using Google Drive, you have some control over the documents you share; you can add new files or delete the documents that you've already sent. Using Google Drive as a Virtual Data Room brings us some obvious benefits, but at the same time, there are also many drawbacks.
Issues with using Google Drive as VDR
1. Participants Need to Be Google Users
The main issue with using Google Drive as a virtual data room is that participants need to be Google users to receive the documents. Otherwise, you would need to share the documents publicly. However, even if you share the documents with Google users, everyone in the VDR will be able to see who else has access to the particular documents. In a competitive round of fundraising this can prove detrimental. The only exception is if you share the files publicly, and this is far from the best option when we talk about data security.
2. Professionalism
If Google Drive is used as a Virtual Data Room, you won’t have the possibility of adding custom branding, and you’ll be stuck with it looking like Google Drive which doesn’t give off the impression of professionalism.
3. Lack of Auditing
Another important drawback is that it's harder to control user access, and you don’t have the option to track who’s viewing your shared documents. You are not going to know if the participants have opened key documents, or spent enough time reviewing them, nor which particular documents got the most attention.
Using Orangedox as a Virtual Data Room
All the disadvantages mentioned above can be easily turned into benefits through the adoption of a Virtual Data Room provider.
1. Security
VDR Providers like Orangedox can synchronize with Google Drive and provide an even greater level of security. The most important thing they provide is the ability to easily add any participants, regardless of whether they are a Google user or not. Anyone with an email address can be sent access to an Orangedox data room. Also, Orangedox protects access using their Secure Document Sharing Technology, which prevents participants from sharing or forwarding documents to others. Thus ensuring that only the intended recipient can view documents within the virtual data room.
2. Visibility
Using Orangedox you can handle up to 500 recipients per Virtual Data Room at the same time. In contrast to using Google Drive as a VDR, Orangedox is not going to disclose information on who is looking at the documents, so the privacy of the individuals involved will be ensured. You can also disable the option for downloading the documents and convert them to read-only format that is mobile-friendly and recipients can read them in the browser thanks to our custom document viewer.
3. Branding and Accessibility
Unlike Google Drive, Orangedox can also brand your Virtual Data Room with your logo and color scheme, giving it a professional look and feel , which helps provide credibility to your organization. . You can also change the content in the Virtual Data Room or disable their access at any time, even after you grant access to the participants, and you can do all of this right from your Gmail account thanks to our Google Workspace App.
4. Detailed Audit Trail
Unfortunately, Google Drive does not provide any auditing capabilities for documents shared outside your organization. Using a Virtual Data Room provider like Orangedox you’ll be able to get a detailed audit trail that records every action taken within the virtual data room. Allowing you to see which participant opened each document, as well as how much time they spent reading each page. Helping you focus your time and energy on the participants who are most interested in your funding round or M&A deal.
Conclusion
Using a Virtual Data Room in our everyday activities can significantly streamline and enhance the deal-closing process for businesses. Regardless of whether you are trying to sell services or products to clients, work on your next M&A deals, or fundraising for your next round of venture funding, VDRs can facilitate a smooth and organized closure of deals.
You can try to use Google Drive as a quick and easy VDR, however, there are significant drawbacks when compared to other VDR products. Orangedox, on the other hand, enables seamless synchronization with Google Drive that will expand your VDR functionality well beyond that of Google Drive. Enabling you to invite external participants by email, and provide a detailed audit trail that records every action taken within the VDR. On top of that, it offers improved security with the ability to prevent documents from being shared or downloaded. In addition, you’ll be able to brand your VDR with a professional look and feel. Explore the possibilities of Orangedox.
Start your 14-day free trial of Orangedox Virtual Data Rooms and see what Orangedox can do for your business.
Orangedox provides one-click create virtual data rooms that are directly synced with your Google Drive folders. You can explore how to create an effective Virtual Data Room here.
