The virtual data room is deeply ingrained in the systems of modern business companies; now, almost no M&A transaction takes place without involving the VDR space. These multifaceted solutions can also be helpful in a wide variety of operations and industries, which means that the VDR market is overflowing with multiple offerings. Data rooms vary in purpose, feature set, and price. The latter is of particular concern to entrepreneurs who want to purchase this service. So how much will it cost to use a data room? That’s what we’ll find out in this article.
What is a virtual data room?
A virtual data room is a secure digital space for storing and sharing data. But it also offers a host of other benefits that can streamline many processes, such as document management, communication, and control. For example, companies can invite potential investors or partners into the space and provide remote access to all necessary documents for operations such as fundraising, IPOs, due diligence, mergers and acquisitions, and more. In addition, these tools also help companies post-closing during integration.
A virtual data room can save a significant amount of money, time, and effort; they make your routine work easier with automation, communication, and reporting features. However, coming back to pricing, each provider provides different pricing depending on your project and its pricing model. So the variation in pricing can be huge, from $500 a month to $10,000 a month or even more.
VDR pricing structure
Virtual data room providers set their prices based on one of these pricing models:
- Page charges
Many providers charge per page of uploaded documents. This pricing policy is one of the oldest, and depending on the size of the project, the price per page can be anywhere from 40 to 85 cents. Sometimes this can be a problem because companies can overspend and bill colossal amounts. Therefore, this type of fee will only benefit small businesses and minor projects.
- Pay-per-user fees
Other VDR vendors provide a certain number of user licenses and charge for each additional user or administrator. Typically, the price per different administrator is $100 to $250. If this is the case, calculate if this is profitable enough for you and how many users can fit into the space without charging more.
- Pay for storage size
In this case, providers are divided into two subgroups. One type of which charges for a certain amount of GB of storage, while the other provides a certain amount of gigabytes for free and charges for exceeding that limit. So, you can pay up to $75 per gigabyte for exceeding the limit. When choosing this payment method, ensure that your project does not contain too many media files, such as videos or presentations, as they weigh quite a bit.
- Fixed monthly fee
Fixed plans are a fairly common way to pay. Each offers a particular set of features, which determines its price. Such plans can cost anywhere from $400 to $1,000 per month. This payment method allows companies not to exceed their limits and better control their costs.
So, VDR pricing models are very diverse. This has its advantage because each company will be able to calculate and decide which of these payment methods will be the most profitable and efficient for them.