Best Virtual Data Room Providers Review

Check out the best virtual data room providers according to VDR global rankings. Compare prices and features of virtual data rooms and choose the data room software for your needs.

We provide insight and advice to help clients understand the VDR market trends, identify opportunities, and grow their businesses.

What is a virtual data room?

A virtual data room (VDR), or a virtual deal room, is a secure online repository for storing critical data and sharing sensitive documentation. Usually, it is used to facilitate the due diligence process during M&A deals and other complex financial transactions. Learn more about what is a data room

VDR software allows users to share confidential documents and critical business data with third parties, like investors or clients, in a controlled environment. Additionally, in a secure online space, they can interact with each other during a deal-making process from any device and location. This is possible thanks to such features as the Q&A and comment sections.

An online data room, digital data room, and electronic data room are synonymous with a virtual data room.

Compared to traditional data rooms (physical data rooms) an electronic data room eliminates physical paperwork, which reduces clutter and waste. Moreover, the digital data room offers advanced document management and security features that help to improve workflow and increase a team’s productivity — traditional data rooms can’t offer that.

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VDR benefits

Let’s list the main benefits the best virtual data room providers bring to business owners:

• Cost-efficiency. Implementing a virtual data room for your project or deal is much more cost-efficient than doing so with the help of traditional physical data rooms, for example. This is because, with a physical data room, you’d also pay for the rent, employee’s compensation, and lots of paper.
• Smooth transaction flow. Thanks to the variety of services offered by modern virtual data rooms, such complex financial transactions as M&A, for example, are conducted much faster and smoother. All the parties involved can easily access the data room from anywhere and at any time and all the data is securely stored and protected from unauthorized access. This can significantly accelerate the deal-making process and realize expected synergies faster.
• Secure sharing and storing of confidential documents and other sensitive data. The trademark of virtual data rooms is the security they provide. That’s exactly why they’re a better choice for handling complex business transactions compared to traditional cloud storage solutions.
• Effective collaboration on a project or deal. All the users of a virtual data room can effectively collaborate thanks to the Q&A and comments sections. This enhances the overall team’s productivity and accelerates decision-making.
• Multi-project management. The best virtual data room providers enable managing several projects at once: meaning you have a separate data room space for each project with different levels of access and documentation uploaded. This is especially helpful when a company undergoes a capital raising round, for example. You can have a separate data room space for every potential investor without having them overlapped.

Compare some of the benefits of the top-rated VDR providers:

Data room structure

Typical components of the virtual data room structure usually include the following: 

• Dashboard. Upon logging in, users typically land on a dashboard that provides an overview of recent activity, notifications, and important updates related to the data room.
• Folder structure. The data room is organized into a hierarchical folder structure, similar to a traditional file system, to categorize and organize documents logically. This structure often mimics the structure of physical data rooms used in the past.
• Search functionality. With the dedicated search bar, users can quickly jump to the required folder or file within the data room.
• Audit trails. There’s a dedicated section with an overview of the data room activity. Comprehensive logging and reporting functionalities track user activity within the data room, providing insights into who accessed which documents and when.

Creating a clear and logical structure for a virtual data room space ensures straightforward data management and effective collaboration over large volumes of data.

Who provides data room services?

In short, virtual deal room services are provided by virtual data room providers.

VDR providers specialize in data storage and sharing with a focus on security. To ensure the security of business document flow, they comply with the necessary digital standards and offer a number of dedicated services and features.
The virtual data room market is growing: it was estimated at $2.23 billion in 2023 and is expected to grow at a CAGR of 12.6% and reach $5.76 by 2032. With it, the number of VDR vendors grows as well, so that the user always has a choice when looking for a top virtual data room.

Virtual data room vendors comparison — top 6

Now, let’s make a virtual data room comparison among different providers that are industry leaders to help you compare virtual data rooms and choose the best data room for your company’s needs.

You can check more providers available on the dedicated page

Best virtual data rooms for M&A

M&A online data rooms are basically data rooms used for M&A deals. 

The sell-side uploads all the required documents about the business to the online data room so that the buy-side could review all the details before making a final decision. 

Naturally, the security and confidentiality M&A VDR providers offer matters the most here, as an M&A deal presupposes sharing sensitive information with other parties.

Basically, every VDR provider is suitable for M&A transactions. So when making a data room software comparison to choose the most suitable one, consider the needs of your business. 

The general requirements for an M&A VDR provider are security standards and features. The rest of the feature set depends on the size of your business and the length of the M&A deal.

Large companies require a very wide range of document management features because they work with large volumes of data. Also, the more people use VDR technology, the higher the need for the technical support of a personal manager.

While for small businesses, online training on working with VDR and a basic list of document management functions are enough. For small business owners, the price is more important than for large corporations. Therefore, the starting price for some electronic data room providers can start from $900 per month, and this will be expensive for small businesses and quite acceptable for large businesses.

Learn more about the best m&a data rooms.

How to choose data room software in 6 steps: Selection guide 

Searching for the right virtual data room is much more straightforward when having a VDR solutions selection guide. Follow these recommendations to find a VDR provider that fits your business needs the best:

1. Outline your requirements
2. Consider the necessary features
3. Compare the options
4. Consider the data room provider’s experience in your industry
5. Read the reviews
6. Request a complimentary trial

1. Outline your requirements

Every company and every project is unique. Based on your purpose, the company’s size, the industry specifics, and many other factors, you’ll need to navigate between pre-established VDR plans and tailored flexible virtual data room solutions.

To narrow down the search, ask yourself the following questions in terms of two main categories — people and data:

People	Are they the key decision-makers or the entire company? What access level will each member have? Are all potential VDR users tech-savvy?
Data	What is the volume of the data that we will store? What are the main file types we rely on in daily business communication? What confidentiality levels will the organization need? What downloading possibilities will allow for quick data sharing?

2. Consider the necessary features

If this is your first time dealing with VDR, you might not know what is generally available out there. At this point, it is important to comprehend the distinction between rudimentary data storage and VDR. While typical storage solutions offer different approaches to data safekeeping, such as uploading, viewing, downloading, and sometimes minor editing, virtual data rooms go beyond that scope, especially when compared to a physical data room.

In the table below, we’ve listed the most common features a reliable online data room provider should offer.

Document management	Drag-and-drop and bulk upload. Drag-n-drop and bulk uploading are the typical data room features that help to upload files in bulk and in a single click.   Advanced search. It helps to find anything in a few seconds. This is usually possible due to advanced search filters, tags, labels, and the optical character recognition tool, which performs a full-text search among all files.  Auto indexing and automated index numbering. When uploading lots of files and folders, they’re all grouped in a clear data room structure automatically and form a numbered data room index.
Security	Dynamic watermarking. It enables digital watermarks to appear on top of every document when it’s viewed, downloaded, or printed. Redaction. This is one of the advanced features VDRs provide. It blacks out certain areas of files so that personally-identifiable information stays private.  Fence view. This is also one of the advanced functions data rooms offer. When it’s activated, a user sees only a part of the document, while the rest of it is covered with a digital view. It also prevents screenshotting.  Security certifications. The most trusted data rooms offer at least ISO 27001, SOC 1/2/3, GDPR, and HIPAA.
Access security	Granular access permissions. Admins can set certain access levels so that only authorized users can access, print, or download documents. Multi factor authentication. Most data rooms offer two-factor authentication, which enables users to verify their identity by entering the SMS code when accessing virtual data rooms. Time and IP access restrictions. Admins can restrict access to certain IPs or set limited periods of time for viewing documents.
User management	Bulk user invitation. It helps to invite lots of users in a single click.  Easy group setup. Admins can create groups with different access privileges so that everyone can only access the files they need. Notifications. Users can receive notifications about uploaded and deleted documents and certain activities inside data rooms.
User experience	Multilingual interface. The more supported languages virtual data rooms offer, the better. It also corresponds to customer support — top data rooms speak their clients’ language. Third-party integrated tools. Such integrations as Slack, Zoom, or OneDrive make collaboration inside data rooms more efficient. Free demo. It’s great when prospects have a chance to see virtual data rooms services in action before purchasing a subscription. Desktop and mobile applications. Data rooms that allow working on deals on all devices are definitely among customers’ top choices.
Reporting	Audit logs. An audit log enables recording every action inside data rooms as well as maintaining internal compliance. Custom reporting. For more efficient collaboration, admins have user activity tracking possibilities to track actions inside data rooms and create custom reports on all group activity
Customization	General look and feel. Users can add brand colors and logos to data rooms — this is something you can’t do when exchanging documents via physical space. Customizable watermarks. Users can customize the contents of watermarks and how they will be displayed — on viewing, downloading, or printing.  Customizable NDA. Admins can set certain terms of use  every user will need to accept when accessing data rooms.

3. Compare the options

There are many virtual deal room services providers on the market and choosing one can be a daunting task. That’s why it’s recommended to make a thorough comparison of several vendors to ensure you select the best fit for your business.

When comparing virtual data room solutions, consider the following factors.

Security

The variety of data and access security features offered is often a crucial factor when choosing the top VDR provider. Keep an eye out for things like two-factor authentication, timed access expiration, multiple permission levels, and IP address-based access limitations. Additionally, consider the provider’s compliance certificates. Look for virtual data room solutions that exhibit certifications such as SOC 1 & SOC 2, ISO 27001, HIPAA, GDPR, and PCI DSS.

Deployment

Each VDR offers a certain level of adaptability when it comes to operating systems and devices. The ideal solution will be equally functional across all majorly utilized platforms, iOS, Android, Windows, Linux, or macOS, with no extra plugins needed. Also, look at the suggested data hosting locations. The majority of vendors use public clouds and multiple international data centers, but the select ones might be able to offer physical storage and data centers preferable to the user as well.

Support

You can judge the effectiveness of any given provider by their customer support’s availability, contact channels, and response time. Opt for providers where customer support can communicate in multiple languages and is accessible 24/7 via live chat, phone, or email. 

User management

The VDR provider you’d want to go with will give you the option to restrict accessibility by location or by role, establish multiple accessibility levels, and monitor the activity of all users within the platform. To ensure an effective experience for all, look for features such as bulk invitations, adjustable Excel viewing permissions, user notifications, and streamlined group setup. 

Interface

A VDR’s interface should have a clear, intuitive configuration and be equally apparent to the CFO and the entry-level accountant. A VDR with a well-thought-out interface should offer extensive deployment options, a single sign-on for all projects, and a convenient scroll-through for navigation between thousands of files. Apart from a simple and comprehensive UI, you might also want to take advantage of VDR customization. Look for vendors that allow customizing the logo, terms and conditions, and general data room look.

Pricing

There are several pricing models that modern VDR providers offer: 

• Per-storage. You pay for the amount of storage you need.
• Per-page. You pay for each page of data you upload to the data room.
• Per-user. You pay for each user you invite to the data room.
• Flat monthly fee. You pay a fixed price monthly or yearly depending on the services provided. 

Typically, VDR vendors either offer a flat monthly fee or combine several pricing approaches.

4. Consider the data room provider’s experience in your industry

Most virtual data rooms provide a dedicated section on their websites where they share testimonials or clients’ stories. This is where you can check what industries a particular VDR vendor has worked with and how it helped to solve their clients’ queries. 

Naturally, to get the best VDR solution, you should look for a provider that has experience in your industry. For example, if you need a virtual data room to use during due diligence, opt for those that specialize in M&A or finance.

5. Read the reviews

Look for third-party sites for deeper insights into VDR providers. Check out the customer reviews on platforms like Trustpilot or Software Advice, as well as the employees’ view of the company on Glassdoor, for example. Taking both internal and external virtual data room reviews into consideration will give you a good idea of the VDR’s effectiveness and ethics.

6. Request a complimentary trial

Just before you make the final choice among the considered vendors, take advantage of using their services for free for at least a month. Unlike physical data rooms, most modern virtual deal rooms offer free trials. 

During the data room free trial, you should get a feel of how well your requirements match with the chosen VDR. Additionally, you can use the charge-free time to prepare for future procedures, upload and organize all the documents, and set the appropriate access limitations. 

Top 14 uses of data room software

Virtual data rooms are utilized in almost any situation where you need to give third parties confidential access to certain sensitive corporate data. 

When it comes to the areas of business, the most common data room use cases include the following:

1. Mergers and acquisitions
2. Corporate repository
3. Manufacturing
4. Intellectual property
5. Loan syndication
6. Litigation processes
7. Accounting
8. Real estate management
9. Initial public offering (IPO)
10. Capital raising
11. Private equity
12. Bankruptcy and restructuring
13. Life sciences
14. Banking

1. Mergers and acquisitions

M&A virtual data room is mostly used during the due diligence process of a financial transaction when potential buyers review large volumes of documentation. 

A data room for M&A allows for the secure sharing of your confidential information without any possible leaks. 

With a virtual data room software implementation, you facilitate the due diligence process and boost the chances of closing the deal faster and more efficiently. And even if the deal fails, your corporate data stays protected and unrevealed.

2. Corporate repository 

VDR software is the best solution for storing huge amounts of corporate information. It provides lifecycle management of your business documentation and allows you to take full control of that. You can store files of almost all formats: from videos to presentations and more.

Moreover, most data room vendors offer the ability to get reports on the overall data room activity inside the online deal room — this is what traditional physical data rooms can’t offer. This lets you monitor all the processes in the company and timely improve them when there’s such a need.

3. Manufacturing

Manufacturing industry is always about billion-dollar contracts and projects. Obviously, such high-stakes deals need efficient management and confidentiality. 

Data rooms not only enable the easy collaboration and distribution of sensitive documents during manufacturing deals but also provide a high level of security for all confidential documents shared.

4. Intellectual property

Multiple lawyers of security data rooms ensure that all the patents, copyrights, trade secrets, and trademarks are kept from undesired views. 

This is especially relevant when companies have to disclose confidential data during partnerships or M&A transactions.

5. Loan syndication

When managing a loan syndication process, for a borrower, it’s important to keep all the sensitive information confidential. On the other hand, a lender will want to have easy access to all the documentation to analyze a borrower’s credit history, assess the facility, and comment on the proposed terms and conditions. Secure file sharing and effective collaboration are exactly what VDR solutions offer.

6. Litigation processes

During the litigation process, a high level of security is extremely important since lots of confidential documents are usually involved. Most modern VDR providers offer a range of security services aimed at protecting customers’ data, that’s why VDRs are often used for litigation processes.

7. Accounting

Accounting presupposes working with lots of sensitive financial data. That’s why the security of that data is of the foremost importance. This is what data rooms can offer.

Via VDRs you can exchange documents without worrying that some third parties will see them.

8. Real estate management 

The immovable property industry requires sharing lots of documentation with potential buyers. 

This is why real estate agents take advantage of the secure VDR technology. You can upload all the necessary files to the virtual data room for prospective customers to review before the deal. Besides, the e-signature feature most VDR providers offer eliminates the need to arrange numerous offline meetings and speeds up real estate transactions.

Learn more about what a virtual data room can do in a hot real estate market.

9. Initial public offering (IPO)

By deciding to go public, you have to gather and disclose huge amounts of company-related documentation.

Provided that not only potential investors but also other third-party experts such as underwriters will have access to your data, security measures are significant. 

Virtual data room services are the solution to that.

Learn more about the benefits of using a virtual data room for an IPO.

10. Capital raising

Fundraising is also a complicated and effort-consuming process. To attract investors and get funds, you need to provide all the necessary information about your venture. 

With the best VDR, it’s easy to do thanks to the smooth upload and straightforward data management. 

What’s more, the due diligence processes are simplified and improved, as all prospective investors and other interested parties can access your files from anywhere via one secure link. In addition, most vendors offer a Q&A section where users can ask any arising questions and get prompt answers.

Learn more about the benefits of using a virtual data room for fundraising.

11. Private equity

Private equity firms need VDR solutions to successfully and securely store all the M&A contracts as well as other sensitive documentation. 

Oftentimes, such companies have a few potential deals in the process. That’s why reliable VDR software is hugely helpful when managing multiple projects simultaneously.

12. Bankruptcy and restructuring

When a company is undergoing bankruptcy and is in the process of restructuring, every detail matters. 

The best virtual data rooms allow for storing huge amounts of information in one place. What’s more, given that the whole process involves interested parties from different locations or departments, a high level of security and effective collaboration is desired. This is what virtual deal rooms also provide.

13. Life sciences

The main concern of modern healthcare and biotech companies is the complete safety of their confidential data, such as various research results and information about patients. 

That’s also the reason why they opt for VDR services. Virtual data rooms simplify the whole scientific process thanks to the numerous security features, collaboration tools, and round-the-clock access. 

14. Banking 

Banking, especially investment banking, is the most common use case of VDR solutions. 

Banks and other financial institutions always have piles of sensitive information to store: from financial transactions’ data to business contracts. Electronic data rooms offer secure cloud storage for all that data.

Top data room providers also enable straightforward collaboration between the parties involved, easy access at any time of the day, and a dedicated support team that is ready to assist when in need.