Virtual data room software has firmly established an undeniable significance in the contemporary business world. As of 2018, the global virtual data room market had already surpassed the $1 billion milestone ($1.3 billion to be exact), and industry experts have forecasted the potential for it to reach or even exceed $3.63 billion by 2026.
The virtual data room was originally developed to streamline mergers and acquisitions and address compliance requirements from regulatory authorities. However, as VDR technology has aged, it has now cast a spell in the global business fraternity. Be it commercial organizations, nonprofits, public institutions, or dealmaking, a secure virtual data room is what they seek.
Currently, North American countries such as the United States and Canada are amongst the biggest consumers of virtual data room technology.
Why did it happen? What pushed businesses in Canada and other parts of the world to switch to virtual data room technology? What are the predictions for the future, and who are the top virtual data room providers in Canada?
How Did Virtual Data Rooms Become Common In The Canadian Business World?
Virtual data room market growth is backed by multiple factors, but here are three major ones.
Digitalization
Over the past decade, the corporate landscape has undergone a rapid digital transformation, with digitalization becoming the new norm across every global sector. Businesses have not only shifted their focus to digital marketing, but they have also started employing Saas tools, like virtual data rooms, for internal operations.
Data management, business meetings, communication, project handling, and dealmaking are becoming digital. Businesses have been using the virtual data room for startups fundraising, mergers and acquisitions, crowdfunding, capital raising, and activities alike.
Cybersecurity
As mentioned above, digitalization is a triggering factor for data room technology growth. However, this digitalization wave has also presented unprecedented opportunities for hackers and cybercriminals.
In recent years, the world has witnessed high-profile data breaches, including the infamous Yahoo and Google data breaches. These incidents have forced businesses to seek secure data management solutions to safeguard their confidential business data.
Covid-19
The COVID-19 pandemic and subsequent lockdowns forced the business fraternity to seek secure digital alternatives to continue business operations. Fortunately, virtual data rooms emerged as a reliable solution, offering unparalleled data security and providing businesses with a complete virtual workspace to easily perform their routine activities.
Mergers and Acquisitions (M&A)
Data rooms have long been a staple in M&A deals. They facilitate the exchange of confidential documents, financial records, and due diligence materials between parties involved in a transaction. The goal is to streamline the process while maintaining a high level of security.
Top Virtual Data Room Providers in Canada
The following are the top VDR providers in Canada right now:
- iDeals Solutions
- Clinked
- Ansarada
- Citrix
- Merrill
It is highly advised to compare virtual data rooms, have a detailed virtual data room pricing overview, look out for their customer support, and make sure it is easy to use.
Virtual Data Rooms In Canada — Trends And Predictions
Canada is the second biggest online data room technology consumer, falling behind the United States. Following are the trends that ensure the growth of VDR technology in this region.
Remote Working
The era of remote work, which employees happily embraced during the COVID-19 pandemic, has also favored businesses. That’s mainly because it allows employees to work at their own pace and time, thus improving their productivity. Second, it is highly cost-effective for businesses. That is why virtual data rooms will be in high demand in years to come.
Versatile Business Solutions
Contemporary businesses seek diverse business solutions to meet their multifaceted needs. Virtual data rooms serve as versatile, multipurpose solutions, catering to a wide range of functions, including data storage, sharing, online communication, business meeting management, remote collaboration, and facilitating online dealmaking.
What’s more, there are dedicated data room services for different business needs. For instance, you can have a custom virtual data room due diligence for processes like fundraising, M&As, IPOs, etc.
The Advent And Expansion of AI
Artificial Intelligence (AI) stands as the latest and perhaps most remarkable technological advancement. AI empowers businesses to forecast the future based on historical data and trends. AI-based tools are instrumental in improving decision-making, with virtual data room providers already integrating AI-based features into their VDR solutions.
Cybersecurity
In the present day, businesses hold an unprecedented amount of information, which can either fortify their positions or lead to financial ruin. Corporate success thrives on data intelligence, which is why data protection is the key.
Also, regulatory bodies and governments are increasingly vigilant about protecting consumer data, and businesses have to comply. In light of this, virtual data rooms stand as strong contenders to be highly demanded data management tools.
Increasing Number Of Startups
Studies have found that there are more than 3,000 startups in Canada, and the figure is increasing. When it comes to fundraising, virtual data rooms are one of the best choices for fundraisers across the globe — thanks to their premium data security and versatile feature inventory.
Data Analytics
Advanced data analytics tools will be integrated into data rooms, allowing users to gain insights from the vast amounts of information they store. This can aid in better decision-making and identifying trends and patterns.
Final words
Virtual data room technology is one of the fastest-growing Saas solutions in the world. Canada, the USA, and other parts of North America constitute a major consumption percentage of VDR technology. It is safe to say that the rise of remote working, the increasing number of startups, and cyber security needs will only grow the demand for virtual data rooms in Canada.
