I was invited last week to share with a group of MBA students our perspectives on the history of Virtual Data Rooms. This is a brief compilation of what I shared with them on my experience in this business line. Experience, you see, is a precious commodity because someone was present, involved and personally learned from an event – and hence can share their story first hand to let people relate to it in much better way.
Starting from the humble beginnings when the world’s first VDR was created and used for Debt Underwriting, the industry has grown significantly. VDRs have become the norm in almost all transactions that are in the due diligence phase substituing Physical Data Rooms. But back then, it was a whole different story as the people were reluctant to shift from traditional Datarooms to a Online one. Lets have a look at some of the challeneges that the industry faced when it was nascent .